This Mongolian Mining Insider Reduced Their Stake By 60%

Insiders were net sellers of Mongolian Mining Corporation's (HKG:975 ) stock during the past year. That is, insiders sold more stock than they bought.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Mongolian Mining

In the last twelve months, the biggest single sale by an insider was when the Independent Non-Executive Director, Tze Ching Chan, sold HK$1.7m worth of shares at a price of HK$11.30 per share. So we know that an insider sold shares at around the present share price of HK$11.02. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Tze Ching Chan was the only individual insider to sell over the last year.

Tze Ching Chan divested 249.00k shares over the last 12 months at an average price of US$12.14. 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!

See our latest analysis for Mongolian Mining

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Insiders At Mongolian Mining Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Mongolian Mining. In total, Independent Non-Executive Director Tze Ching Chan dumped HK$1.3m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Mongolian Mining Boast High 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. We usually like to see fairly high levels of insider ownership. It's great to see that Mongolian Mining insiders own 7.2% of the company, worth about HK$818m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Mongolian Mining Tell Us?

An insider hasn't bought Mongolian Mining stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mongolian Mining. At Simply Wall St, we found 1 warning sign for Mongolian Mining that deserve your attention before buying any shares.

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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.