New Pacific Metals Insiders Miss 23% Gain After Offloading Stock

While it’s been a great week for New Pacific Metals Corp. (TSE:NUAG) shareholders after stock gained 23%, company insiders might have missed out on those gains after selling stock earlier this year. Had they waited, they might have been able to sell their stock at much higher prices and thereby received a better value on their investment.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for New Pacific Metals

New Pacific Metals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Tok Kong, for CA$136k worth of shares, at about CA$3.92 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (CA$2.63). So it may not shed much light on insider confidence at current levels. Tok Kong was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 15.11k shares for CA$32k. But insiders sold 70.60k shares worth CA$225k. Tok Kong sold a total of 70.60k shares over the year at an average price of US$3.19. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Have New Pacific Metals Insiders Traded Recently?

There was only a small bit of insider buying, worth CA$6.4k, in the last three months. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.

Does New Pacific Metals Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that New Pacific Metals insiders own 7.3% of the company, worth about CA$31m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The New Pacific Metals Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. We don't take much encouragement from the transactions by New Pacific Metals insiders. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for New Pacific Metals (2 are significant!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.