MAST Energy Developments' Stock Sinks To UK£0.003, But Insiders Sold Even Lower

MAST Energy Developments PLC's (LON:MAST) value has fallen 20% in the last week, but insiders who sold UK£89k worth of stock over the last year have had less success. Given that the average selling price of UK£0.0062 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for MAST Energy Developments

MAST Energy Developments Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Director, Paulus Venter, sold UK£83k worth of shares at a price of UK£0.0059 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 silver lining is that this sell-down took place above the latest price (UK£0.003). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Paulus Venter.

Paulus Venter sold a total of 14.50m shares over the year at an average price of UK£0.0062. 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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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 UK£11k worth of MAST Energy Developments stock, about 1.4% of the company. We consider this fairly low insider ownership.

What Might The Insider Transactions At MAST Energy Developments Tell Us?

The fact that there have been no MAST Energy Developments insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by MAST Energy Developments insiders. And we're not picking up on high enough insider ownership to give us any 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. Every company has risks, and we've spotted 6 warning signs for MAST Energy Developments (of which 3 make us uncomfortable!) you should know about.

Of course MAST Energy Developments 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.