Some Metals Acquisition Limited (NYSE:MTAL) shareholders may be a little concerned to see that the Independent Director, Rasmus Kristoffer Gerdeman, recently sold a substantial US$518k worth of stock at a price of US$10.36 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 71% of their entire holding.
The Last 12 Months Of Insider Transactions At Metals Acquisition
In fact, the recent sale by Rasmus Kristoffer Gerdeman was the biggest sale of Metals Acquisition shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$11.22. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 71% of Rasmus Kristoffer Gerdeman's holding.
Over the last year, we can see that insiders have bought 25.08k shares worth US$303k. But insiders sold 50.00k shares worth US$518k. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 3.5% of Metals Acquisition shares, worth about US$29m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Metals Acquisition Insider Transactions Indicate?
The stark truth for Metals Acquisition is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Metals Acquisition has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.
But note: Metals Acquisition 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
