Have Insiders Sold Newcrest Mining Limited (ASX:NCM) Shares Recently?

Some Newcrest Mining Limited (ASX:NCM) shareholders may be a little concerned to see that the MD, CEO & Director, Sandeep Biswas, recently sold a substantial AU$2.3m worth of stock at a price of AU$24.37 per share. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Newcrest Mining

The Last 12 Months Of Insider Transactions At Newcrest Mining

Notably, that recent sale by Sandeep Biswas is the biggest insider sale of Newcrest Mining shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of AU$24.20. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Newcrest Mining insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Newcrest Mining

Many investors like to check how much of a company is owned by 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. Newcrest Mining insiders own about AU$35m worth of shares. That equates to 0.2% 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.

So What Do The Newcrest Mining Insider Transactions Indicate?

Insiders sold Newcrest Mining shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Newcrest Mining is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. To help with this, we've discovered 3 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Newcrest Mining.

Of course Newcrest 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, but not derivative transactions.

If you’re looking to trade Newcrest Mining, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.