Some G Mining Ventures Corp. (TSE:GMIN) shareholders may be a little concerned to see that the Independent Director, Norman MacDonald, recently sold a substantial CA$1.1m worth of stock at a price of CA$54.29 per share. However, that sale only accounted for 7.7% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At G Mining Ventures
In the last twelve months, the biggest single sale by an insider was when the Independent Non-Executive Vice-Chairman, David Fennell, sold CA$13m worth of shares at a price of CA$32.97 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$53.46. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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 10% of David Fennell's stake.
Over the last year, we can see that insiders have bought 15.85k shares worth CA$611k. But they sold 601.64k shares for CA$21m. In total, G Mining Ventures insiders sold more than they bought over the last year. They sold for an average price of about US$34.93. It's not particularly great to see insiders were selling shares at below recent prices. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 G Mining Ventures
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Insider Ownership Of G Mining Ventures
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. G Mining Ventures insiders own about CA$327m worth of shares (which is 2.0% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The G Mining Ventures Insider Transactions Indicate?
Unfortunately, there has been more insider selling of G Mining Ventures stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, G Mining Ventures makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, G Mining Ventures has 3 warning signs (and 2 which are a bit unpleasant) we think you should know about.
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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.