Despite Hitting CA$0.085, Flying Nickel Mining Insiders Still Sold Too Soon

Flying Nickel Mining Corp.'s (CVE:FLYN) stock price has dropped 11% in the previous week, but insiders who sold CA$182k in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of CA$0.11 is still below the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Flying Nickel Mining

The Last 12 Months Of Insider Transactions At Flying Nickel Mining

The Interim CEO & Executive Chairman, John Lee, made the biggest insider sale in the last 12 months. That single transaction was for CA$155k worth of shares at a price of CA$0.11 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$0.085. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was John Lee.

In the last twelve months insiders purchased 709.43k shares for CA$70k. But they sold 1.71m shares for CA$182k. John Lee divested 1.71m shares over the last 12 months at an average price of CA$0.11. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Are Flying Nickel Mining Insiders Buying Or Selling?

In the last quarter we saw insiders spend CA$5.0k on shares. But that was only a smidgen more than the CA$2.6k worth of sales. 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 Flying Nickel Mining 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own CA$83k worth of Flying Nickel Mining stock, about 1.1% of the company. We consider this fairly low insider ownership.

So What Does This Data Suggest About Flying Nickel Mining Insiders?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. We're a little cautious about the insider selling at Flying Nickel Mining. And usually insiders own more stock in the company, according to our data. While we like knowing 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. For instance, we've identified 5 warning signs for Flying Nickel Mining (4 shouldn't be ignored) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.