CFO & Executive Director Of Thungela Resources Sold 31% Of Their Shares

Anyone interested in Thungela Resources Limited (JSE:TGA) should probably be aware that the CFO & Executive Director, Gideon Smith, recently divested R6.5m worth of shares in the company, at an average price of R87.12 each. The eyebrow raising move amounted to a reduction of 31% in their holding.

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Thungela Resources Insider Transactions Over The Last Year

Notably, that recent sale by Gideon Smith is the biggest insider sale of Thungela Resources shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of R86.41. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Insiders in Thungela Resources didn't buy any shares in the last year. 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!

Check out our latest analysis for Thungela Resources

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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. Based on our data, Thungela Resources insiders have about 0.6% of the stock, worth approximately R72m. We prefer to see high levels of insider ownership.

So What Do The Thungela Resources Insider Transactions Indicate?

An insider sold Thungela Resources shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While it's good to be aware of 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. Be aware that Thungela Resources is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

Of course Thungela Resources 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.