Group 6 Metals Limited (ASX:G6M) insiders made a handsome profit after selling shares currently valued at AU$0.17 apiece for AU$0.26
Although Group 6 Metals Limited (ASX:G6M) the stock has gained 14% in the past week, insiders who have sold A$321,000 worth of shares over the past year are likely better off. Selling at an average price of AU$0.26, which is higher than the current price, might have been the right move, as holding onto shares would have meant that their investment would be worth less now than it was at the time of the sale. sale.
Although we would never suggest that investors base their decisions solely on what a company’s directors have done, logic dictates that you pay attention to whether insiders are buying or selling shares.
See our latest analysis for Group 6 metals
Insider trading in Group 6 metals over the past year
Insider Catherine Morritt had the biggest insider sale in the last 12 months. This single transaction involved 321,000 Australian dollars of shares at a price of 0.26 Australian dollars each. While we generally don’t like to see insider selling, it’s more of a concern if the selling takes place at a lower price. The silver lining is that this sale took place above the last price (AU$0.17). It is therefore difficult to draw a firm conclusion. The only individual insider seller in the last year was Catherine Morritt.
You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the chart below!
If you like buying stocks that insiders are buying, rather than selling, then you might love this free list of companies. (Hint: insiders bought them).
Group 6 Metals Insiders Recently Bought Stock
It’s good to see that Group 6 Metals insiders have made notable investments in the company’s stock. Executive Chairman and Chief Executive Johann Jooste-Jacobs spent A$97,000 on shares, and there were no sales. This shows some optimism about the future of the company.
Does Group 6 Metals boast high insider ownership?
Many investors like to check how much a company is owned by insiders. We generally like to see fairly high levels of insider ownership. Group 6 Metals insiders hold approximately A$18 million worth of shares. This equals 17% of the business. We have certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.
So what does this data suggest about group 6 metal initiates?
The recent insider buying is encouraging. However, longer-term trades are not so encouraging. We don’t like the transactions of Group 6 Metals insiders over the past year. But they own a reasonable share of the business, and there have been a few purchases recently. Overall, they seem reasonably lined up. In addition to knowing what insider trading is going on, it pays to identify the risks that Group 6 Metals faces. Every business has risks, and we’ve spotted 4 warning signs for group 6 metals (including 3 a little unpleasant!) to know.
Sure Group 6 metals may not be the best stocks to buy. So you might want to see this free set of high quality companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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