Greatland Gold Insiders Sold UK£2.1m Of Shares

The fact that multiple Greatland Gold plc ( LON:GGP ) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Greatland Gold

Greatland Gold Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Senior Non-Executive Director, Michael Borrelli, sold UK£1.6m worth of shares at a price of UK£0.083 per share. That means that even when the share price was below the current price of UK£0.087, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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 only 42% of Michael Borrelli's holding.

Insiders in Greatland Gold didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Greatland Gold insiders own 0.8% of the company, worth about UK£3.5m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Greatland Gold Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. The insider transactions at Greatland Gold are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Greatland Gold is showing 3 warning signs in our investment analysis , and 2 of those are a bit unpleasant...

Of course Greatland Gold 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.