This Insider Has Just Sold Shares In Mandalay Resources

We note that the Mandalay Resources Corporation (TSE:MND) Lead Independent Director, Amy Freedman, recently sold CA$99k worth of stock for CA$4.95 per share. It wasn't a huge sale, but it did reduce their holding by 14%. This does not instill confidence.

Check out our latest analysis for Mandalay Resources

Mandalay Resources Insider Transactions Over The Last Year

The insider, Abraham Jonker, made the biggest insider sale in the last 12 months. That single transaction was for CA$490k worth of shares at a price of CA$2.60 each. That means that even when the share price was below the current price of CA$4.80, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 100% of Abraham Jonker's holding.

In total, Mandalay Resources insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Mandalay Resources

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.9% of Mandalay Resources shares, worth about CA$13m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Mandalay Resources Tell Us?

An insider hasn't bought Mandalay Resources stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Mandalay Resources makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Mandalay Resources you should know about.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.