Insiders Could Have Profited By Holding onto Sunshine Oilsands Shares Despite 26% Drop

Sunshine Oilsands Ltd.'s (HKG:2012) value has fallen 26% in the last week, but insiders who sold CA$10m worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of CA$1.00 is still lower than the current share price.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Sunshine Oilsands

The Last 12 Months Of Insider Transactions At Sunshine Oilsands

In the last twelve months, the biggest single sale by an insider was when the insider, Jun Zhang, sold HK$10m worth of shares at a price of HK$1.00 per share. 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 HK$0.35. So it may not shed much light on insider confidence at current levels. Jun Zhang was the only individual insider to sell shares in the last twelve months. Notably Jun Zhang was also the biggest buyer, having purchased HK$300k worth of shares.

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 are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Sunshine Oilsands insiders own 67% of the company, currently worth about HK$58m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Sunshine Oilsands Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Sunshine Oilsands insider transactions don't fill us with confidence. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Sunshine Oilsands.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.