Critical Metals' Stock Sinks To UK£0.0095, But Insiders Sold Even Lower

Even though Critical Metals Plc (LON:CRTM) has fallen by 14% over the past week , insiders who sold UK£180k worth of 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 UK£0.13 is still lower than 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Critical Metals

The Last 12 Months Of Insider Transactions At Critical Metals

Over the last year, we can see that the biggest insider sale was by the CEO & Executive Chairman, Russell Fryer, for UK£124k worth of shares, at about UK£0.20 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of UK£0.0095. So it may not tell us anything about how insiders feel about the current share price. Russell Fryer was the only individual insider to sell shares in the last twelve months.

Russell Fryer divested 1.36m shares over the last 12 months at an average price of UK£0.13. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Critical Metals Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. Insiders own 30% of Critical Metals shares, worth about UK£190k. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Critical Metals Insiders?

It doesn't really mean much that no insider has traded Critical Metals shares in the last quarter. We don't take much encouragement from the transactions by Critical Metals insiders. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Critical Metals. To assist with this, we've discovered 5 warning signs that you should run your eye over to get a better picture of Critical Metals.

But note: Critical Metals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.