CleanTech Vanadium Mining Drops To CA$0.025, Yet Insiders May Have Sold Too Early

Even though CleanTech Vanadium Mining Corp. (CVE:CTV) has fallen by 17% over the past week , insiders who sold CA$270k worth of stock over the past year have had less luck. The average selling price of CA$0.052 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

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 CleanTech Vanadium Mining

CleanTech Vanadium Mining Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Chairman John R. Lee bought CA$90k worth of shares at a price of CA$0.05 per share. That means that even when the share price was higher than CA$0.025 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. John R. Lee was the only individual insider to buy shares in the last twelve months. Notably John R. Lee was also the biggest seller.

John R. Lee ditched 5.17m shares over the year. The average price per share was CA$0.052. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like CleanTech Vanadium Mining better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Are CleanTech Vanadium Mining Insiders Buying Or Selling?

Over the last three months, we've seen a bit of insider selling at CleanTech Vanadium Mining. CEO & Executive Chairman John R. Lee sold CA$25k worth of shares in that time. But the good news is that there was purchasing too , worth CA$11k. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Does CleanTech Vanadium Mining Boast High Insider Ownership?

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that CleanTech Vanadium Mining insiders own 17% of the company, worth about CA$596k. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At CleanTech Vanadium Mining Tell Us?

We note that there's been a little more insider selling than buying, recently. But the net divestment is not enough to concern us at all. Recent sales exacerbate our caution arising from analysis of CleanTech Vanadium Mining insider transactions. 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. You'd be interested to know, that we found 5 warning signs for CleanTech Vanadium Mining and we suggest you have a look.

Of course CleanTech Vanadium 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.