Despite the fact that Richmond Vanadium Technology Limited's (ASX:RVT) value has dropped 11% in the last week insiders who sold AU$583k worth of stock in the past 12 months have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of AU$0.30 is still lower than the current share price.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Richmond Vanadium Technology

Over the last year, we can see that the biggest insider purchase was by insider Jinru Liu for AU$382k worth of shares, at about AU$0.32 per share. That means that even when the share price was higher than AU$0.065 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Jinru Liu. Notably Jinru Liu was also the biggest seller.

In total, Richmond Vanadium Technology insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Richmond Vanadium Technology

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Does Richmond Vanadium Technology Boast High 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. Our data indicates that Richmond Vanadium Technology insiders own about AU$1.5m worth of shares (which is 10% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Richmond Vanadium Technology Insiders?

The fact that there have been no Richmond Vanadium Technology insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Richmond Vanadium Technology insiders. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Richmond Vanadium Technology. In terms of investment risks, we've identified 3 warning signs with Richmond Vanadium Technology and understanding these should be part of your investment process.

But note: Richmond Vanadium Technology 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.