RTG Mining Insiders Made A Wise Decision By Selling US$1.6m Worth Of Stock

While RTG Mining Inc. (TSE:RTG) shareholders have enjoyed a good week with stock up 20%, they need remain vigilant. Even though stock prices were relatively low, insiders elected to sell US$1.6m worth of stock in the last year, which could indicate some expected downturn.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At RTG Mining

In the last twelve months, the biggest single sale by an insider was when the insider, Richard Hains, sold CA$1.6m worth of shares at a price of CA$0.025 per share. That means that an insider was selling shares at slightly below the current price (CA$0.03). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 99% of Richard Hains's holding. The only individual insider seller over the last year was Richard Hains.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for RTG Mining

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does RTG Mining Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests RTG Mining insiders own 3.0% of the company, worth about CA$1.7m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

So What Does This Data Suggest About RTG Mining Insiders?

The fact that there have been no RTG Mining insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by RTG Mining insiders. And we're not picking up on high enough insider ownership to give us any comfort. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 4 warning signs for RTG Mining (of which 3 don't sit too well with us!) you should know about.

Of course RTG Mining may not be the best stock to buy. So you may wish to see this free collection of high quality 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.