Evolution Mining Non-Executive Chairman Jacob Klein Sells 30% Of Holding

Some Evolution Mining Limited (ASX:EVN) shareholders may be a little concerned to see that the Non-Executive Chairman, Jacob Klein, recently sold a substantial AU$51m worth of stock at a price of AU$15.76 per share. That sale reduced their total holding by 30% which is hardly insignificant, but far from the worst we've seen.

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Evolution Mining Insider Transactions Over The Last Year

In fact, the recent sale by Jacob Klein was the biggest sale of Evolution Mining shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of AU$14.59. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Jacob Klein divested 7.85m shares over the last 12 months at an average price of AU$11.18. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Evolution Mining

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Evolution Mining insiders own about AU$226m worth of shares (which is 0.8% 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 Evolution Mining Insider Transactions Indicate?

An insider hasn't bought Evolution Mining stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Evolution Mining makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Evolution Mining. Case in point: We've spotted 2 warning signs for Evolution Mining you should be aware of.

Of course Evolution Mining may not be the best stock to buy. So you may wish to see this free collection of high quality 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.