Insiders Who Sold Strata Minerals Missed Out On 16% Stock Increase

Despite the fact that Strata Minerals Limited (ASX:SMX) stock rose 16% last week, insiders who sold AU$205k worth of stock in the previous 12 months are likely to be better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of AU$0.04, which is higher than the current price, may have been the best decision.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Strata Minerals

Over the last year, we can see that the biggest insider sale was by the insider, Jason Peterson, for AU$205k worth of shares, at about AU$0.04 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of AU$0.022. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Jason Peterson. Notably Jason Peterson was also the biggest buyer, having purchased AU$60k worth of shares.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Strata Minerals

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Insider Ownership Of Strata Minerals

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. Our data indicates that Strata Minerals insiders own about AU$693k worth of shares (which is 9.7% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Strata Minerals Tell Us?

It doesn't really mean much that no insider has traded Strata Minerals shares in the last quarter. The insider transactions at Strata Minerals are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. 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. At Simply Wall St, we've found that Strata Minerals has 5 warning signs (4 can't be ignored!) that deserve your attention before going any further with your analysis.

But note: Strata Minerals 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.