Have New Pacific Metals Insiders Been Selling Stock?
Anyone interested in New Pacific Metals Corp. (TSE:NUAG) should probably be aware that a company insider, Rui Feng, recently divested CA$673k worth of shares in the company, at an average price of CA$8.97 each. However, the silver lining is that the sale only reduced their total holding by 0.7%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At New Pacific Metals
In fact, the recent sale by insider Rui Feng was not their only sale of New Pacific Metals shares this year. They previously made an even bigger sale of -CA$986k worth of shares at a price of CA$6.39 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$8.30. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 1.5% of Rui Feng's holding.
All up, insiders sold more shares in New Pacific Metals than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for New Pacific Metals
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Does New Pacific Metals Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 7.1% of New Pacific Metals shares, worth about CA$117m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At New Pacific Metals Tell Us?
Insiders sold New Pacific Metals shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing New Pacific Metals. Be aware that New Pacific Metals is showing 4 warning signs in our investment analysis, and 2 of those are potentially serious...
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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.