Have any insiders sold shares of Superior Lake Resources Limited (ASX: SUP) this year?

We have lost count of the number of times insiders have racked up shares in a company that is improving significantly. Unfortunately, there are also many examples of stock prices plummeting after insiders sell stocks. Shareholders might therefore want to know if any insiders bought or sold shares of Lake Superior Resources Limited (ASX: SUP).

What is an insider?

Most investors know that it is okay for business executives, such as directors of the board of directors, to buy and sell company stock. However, there are rules governing insider trading and certain information is required.

We don’t believe shareholders should just follow insider trading. But logic dictates that you pay attention to whether insiders are buying or selling stocks. As Peter Lynch put it, “Insiders can sell their shares for any number of reasons, but they buy them for one only: they think the price will go up.”

Check out our latest analysis for Lake Superior resources

The Last 12 Months of Insider Trading at Superior Lake Resources

In the past year or so, we can see that the biggest insider sale has come from insider Quentin Flannery valued at AU $ 211,000, at around AU $ 0.16 per share. So what is clear is that an insider saw fit to sell around the current price of AU $ 0.16. While insider selling is negative, for us it is even more so if stocks are sold for a lower price. In this case, the big sale took place around the current price, so it’s not too bad (but it’s still not positive).

Fortunately, we note that in the past year, insiders paid AU $ 238,000 for 3.63 million shares. But they sold 2.21 million shares for AU $ 352,000. Over the past year, we’ve seen more insider selling of Superior Lake Resources shares than buying. The sellers received a price of around AU $ 0.16, on average. We do not gain the trust of insiders who sell below the recent share price. But we wouldn’t give too much weight to insider selling. Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. By clicking on the graph below, you can see the exact detail of each insider trade!

ASX Insider Trading Volume: SUP May 14, 2021

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Insider Ownership of Lake Superior Resources

For an ordinary shareholder, it is worth checking out how many shares are owned by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. Superior Lake Resources insiders own around A $ 10 million in shares. This equates to 38% of the business. While this is a high but not exceptional level of insider ownership, it is enough to indicate some alignment between management and small shareholders.

So what does this data suggest about Superior Lake Resources insiders?

There haven’t been any insider trading in the past three months, that doesn’t mean much. Our analysis of Superior Lake Resources insider trading leaves us cautious. But we love that the insiders own a good chunk of the business. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. When we did our research we found 5 warning signs for the resources of Lake Superior (3 should not be ignored!) Which we believe deserve your full attention.

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For the purposes of this article, insiders are those persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.

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