Yahoo Finance Mandalay Resources Corporation (TSE:MND) Insiders Have Been Selling
It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Mandalay Resources Corporation (TSE:MND), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Mandalay Resources
Mandalay Resources Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chairman, Bradford Mills, for CA$1.4m worth of shares, at about CA$1.20 per share. That means that an insider was selling shares at slightly below the current price (CA$1.24). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. We note that the biggest single sale was 100% of Bradford Mills's holding. Bradford Mills was the only individual insider to sell over the last year.
The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our information indicates that Mandalay Resources insiders own about CA$340k worth of shares. This level of insider ownership is notably low, and not very encouraging.
So What Do The Mandalay Resources Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Mandalay Resources shares in the last quarter. We don't take much encouragement from the transactions by Mandalay Resources insiders. And usually insiders own more stock in the company, according to our data. Of course, the future is what matters most. So if you are interested in Mandalay Resources, you should check out this free report on analyst forecasts for the company.
But note: Mandalay Resources 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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
