We wouldn't blame Barrick Mining Corporation (TSE:ABX) shareholders if they were a little worried about the fact that Darian Rich, the Chief Human Resources Officer recently netted about CA$5.0m selling shares at an average price of CA$66.67. That sale reduced their total holding by 24% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Barrick Mining
Over the last year, we can see that the biggest insider sale was by the insider, Graham Shuttleworth, for CA$10m worth of shares, at about CA$50.50 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$65.17. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. This single sale was just 27% of Graham Shuttleworth's stake.
In the last twelve months insiders purchased 670.21k shares for CA$40m. But they sold 1.07m shares for CA$61m. In total, Barrick Mining insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Barrick Mining
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Does Barrick Mining Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Barrick Mining insiders own 0.3% of the company, currently worth about CA$305m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Barrick Mining Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Barrick Mining, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Barrick Mining is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Barrick Mining you should know about.
But note: Barrick Mining 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.
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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.