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 whopping US$1.2m worth of stock at a price of US$32.46 per share. However, that sale only accounted for 7.1% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Newcrest Mining

Newcrest Mining Insider Transactions Over The Last Year

Notably, that recent sale by MD, CEO & Director Sandeep Biswas was not the only time they sold Newcrest Mining shares this year. Earlier in the year, they fetched AU$21.45 per share in a -AU$2.6m sale. That means that even when the share price was below the current price of AU$32.16, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 16% of Sandeep Biswas's holding.

Over the last year, we can see that insiders have bought 188095 shares worth AU$4.0k. On the other hand they divested 260879 shares, for AU$6.9m. All up, insiders sold more shares in Newcrest Mining than they bought, over the last year. The average sell price was around US$26.59. It's not particularly great to see insiders were selling shares at below recent prices. Since insiders sell for many reasons, we wouldn't put too much weight on it. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Newcrest Mining Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Newcrest Mining insiders own 0.1% of the company, worth about AU$35m. 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 Does This Data Suggest About Newcrest Mining Insiders?

The insider sales have outweighed the insider buying, at Newcrest Mining, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Newcrest Mining makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We'd think twice before buying! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: Newcrest Mining may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.