Insiders Sold AsiaBaseMetals At CA$0.12, Meanwhile Stock Sits Near CA$0.07

AsiaBaseMetals Inc.'s (CVE:ABZ) stock price has dropped 22% in the previous week, but insiders who sold CA$433k in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of CA$0.12 is still lower than the current share price.

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.

View our latest analysis for AsiaBaseMetals

AsiaBaseMetals Insider Transactions Over The Last Year

The CFO & Director, Terrylene Penstock, made the biggest insider sale in the last 12 months. That single transaction was for CA$260k worth of shares at a price of CA$0.16 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$0.07. So it may not shed much light on insider confidence at current levels. Terrylene Penstock was the only individual insider to sell over the last year.

Terrylene Penstock divested 3.62m shares over the last 12 months at an average price of CA$0.12. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Are AsiaBaseMetals Insiders Buying Or Selling?

In the last quarter we saw Founder Rajinder Chowdhry spend CA$48k on shares. That's only a tiny bit more than the sales, worth CA$47k. Overall, we don't think these recent trades are particularly informative, one way or the other.

Insider Ownership Of AsiaBaseMetals

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. It's great to see that AsiaBaseMetals insiders own 68% of the company, worth about CA$3.0m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The AsiaBaseMetals Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. It's great to see high levels of insider ownership, but looking back over the last year, we'd need to see more buying to gain confidence from the AsiaBaseMetals insider transactions. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AsiaBaseMetals. Every company has risks, and we've spotted 5 warning signs for AsiaBaseMetals you should know about.

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.