Some Lundin Gold Inc. (TSE:LUG) shareholders may be a little concerned to see that insider Pablo Mir Balmaceda recently sold a substantial CA$1.4m worth of stock at a price of CA$93.00 per share. That diminished their holding by a very significant 52%, which arguably implies a strong desire to reallocate capital.
The Last 12 Months Of Insider Transactions At Lundin Gold
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Ian Gibbs, sold CA$5.7m worth of shares at a price of CA$115 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (CA$91.66). So it may not shed much light on insider confidence at current levels.
All up, insiders sold more shares in Lundin Gold than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Lundin Gold
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Lundin Gold
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Lundin Gold insiders own about CA$103m worth of shares. That equates to 0.4% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Lundin Gold Tell Us?
An insider sold Lundin Gold shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But since Lundin Gold is profitable and growing, we're not too worried by this. 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. To help with this, we've discovered 2 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Lundin Gold.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.