Have Insiders Sold Catalyst Metals Shares Recently?
We wouldn't blame Catalyst Metals Limited (ASX:CYL) shareholders if they were a little worried about the fact that Robin Campbell Scrimgeour, the Independent Non-Executive Director recently netted about AU$1.7m selling shares at an average price of AU$6.67. However, that sale only accounted for 4.8% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At Catalyst Metals
In the last twelve months, the biggest single sale by an insider was when the Technical Director & Non-Executive Director, Bruce Kay, sold AU$9.4m worth of shares at a price of AU$7.83 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 AU$6.66. So it is hard to draw any strong conclusion from it.
Insiders in Catalyst Metals didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Catalyst Metals
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Catalyst Metals
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. It appears that Catalyst Metals insiders own 6.9% of the company, worth about AU$120m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Catalyst Metals Insiders?
Insiders sold Catalyst Metals shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Catalyst Metals is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Catalyst Metals has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.