Independent Senior Non-Executive Director Of Greatland Resources Sold 30% Of Their Shares
We wouldn't blame Greatland Resources Limited (ASX:GGP) shareholders if they were a little worried about the fact that Michael Borrelli, the Independent Senior Non-Executive Director recently netted about AU$6.0m selling shares at an average price of AU$11.34. That sale reduced their total holding by 30% which is hardly insignificant, but far from the worst we've seen.
Greatland Resources Insider Transactions Over The Last Year
The Independent Non-Executive Chairman, Mark Barnaba, made the biggest insider sale in the last 12 months. That single transaction was for AU$13m worth of shares at a price of AU$13.51 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (AU$11.67). So it may not shed much light on insider confidence at current levels.
Insiders in Greatland Resources didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Greatland Resources
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.9% of Greatland Resources shares, worth about AU$67m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Greatland Resources Tell Us?
Insiders sold Greatland Resources shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Greatland Resources makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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, Greatland Resources has 2 warning signs (and 1 which can't be ignored) we think you should know about.
Of course Greatland 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.