The fact that multiple Marimaca Copper Corp. (TSE:MARI) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Marimaca Copper Insider Transactions Over The Last Year
The President, Nicolas Cookson, made the biggest insider sale in the last 12 months. That single transaction was for CA$950k worth of shares at a price of CA$12.20 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of CA$6.52. So it may not shed much light on insider confidence at current levels. Notably Nicolas Cookson was also the biggest buyer, having purchased CA$25k worth of shares.
Over the last year we saw more insider selling of Marimaca Copper shares, than buying. 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!
View our latest analysis for Marimaca Copper
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Insiders At Marimaca Copper Have Sold Stock Recently
Over the last three months, we've seen notably more insider selling, than insider buying, at Marimaca Copper. In that time, President Nicolas Cookson dumped CA$140k worth of shares. On the flip side, President Nicolas Cookson spent CA$25k on purchasing shares (as mentioned above) . Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the company has been fully valued in recent months.
Insider Ownership Of Marimaca Copper
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Marimaca Copper insiders own about CA$14m worth of shares (which is 1.5% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Marimaca Copper Insider Transactions Indicate?
The stark truth for Marimaca Copper is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. For example, Marimaca Copper has 2 warning signs (and 1 which can't be ignored) we think you should know about.
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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