MAST Energy Developments' Stock Sinks To UK£0.0016, But Insiders Sold Even Lower

Even though MAST Energy Developments PLC (LON:MAST) has fallen by 13% over the past week , insiders who sold UK£89k worth of 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 UK£0.0062 is still below the current share price.

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.

Check out our latest analysis for MAST Energy Developments

MAST Energy Developments Insider Transactions Over The Last Year

The Non-Executive Director, Paulus Venter, made the biggest insider sale in the last 12 months. That single transaction was for UK£83k worth of shares at a price of UK£0.0059 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of UK£0.0016. So it may not shed much light on insider confidence at current levels. Paulus Venter was the only individual insider to sell over the last year.

Paulus Venter ditched 14.50m shares over the year. The average price per share was UK£0.0062. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

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. Based on our data, MAST Energy Developments insiders have about 4.3% of the stock, worth approximately UK£30k. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

So What Do The MAST Energy Developments Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of MAST Energy Developments insider transactions leaves us unenthusiastic. And we're not picking up on high enough insider ownership to give us any comfort. 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. Every company has risks, and we've spotted 6 warning signs for MAST Energy Developments you should know about.

But note: MAST Energy Developments 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.