Have Sunrise Energy Metals Insiders Been Selling Stock?

Some Sunrise Energy Metals Limited (ASX:SRL) shareholders may be a little concerned to see that the MD, CEO & Executive Director, Sam Riggall, recently sold a substantial AU$4.5m worth of stock at a price of AU$18.48 per share. However, it’s crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.3%.

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Sunrise Energy Metals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Kiril Sokoloff for AU$5.9m worth of shares, at about AU$5.34 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$15.90. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.

Happily, we note that in the last year insiders paid AU$11m for 2.78m shares. On the other hand they divested 820.47k shares, for AU$9.1m. In total, Sunrise Energy Metals insiders bought more than they sold over the last year. Their average price was about AU$4.01. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today’s levels. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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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. We usually like to see fairly high levels of insider ownership. Sunrise Energy Metals insiders own 34% of the company, currently worth about AU$842m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Sunrise Energy Metals Tell Us?

An insider sold stock recently, but they haven’t been buying. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So we’re happy to look past recent trading. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Sunrise Energy Metals. Case in point: We’ve spotted 3 warning signs for Sunrise Energy Metals you should be aware of, and 2 of these shouldn’t be ignored.

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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.