We wouldn’t blame Endeavour Mining Corporation (TSE:EDV) shareholders if they were a little worried about the fact that Henri de Joux, the Executive Vice President of People & IT recently netted about CA$846k selling shares at an average price of CA$33.18. That’s a big dump, and it decreased their holding size by 29%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Endeavour Mining
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Naguib Onssy Sawiris for CA$14m worth of shares, at about CA$19.65 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$30.74. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid CA$40m for 1.97m shares. But insiders sold 333278 shares worth CA$8.1m. In total, Endeavour Mining insiders bought more than they sold over the last year. You can see the insider transactions (by 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Endeavour Mining insiders own 32% of the company, currently worth about CA$1.1b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Endeavour Mining Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Endeavour Mining. Looks promising! While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example – Endeavour Mining has 1 warning sign we think you should be aware of.
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, but not derivative transactions.
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