Have Insiders Sold Perseus Mining Limited (ASX:PRU) Shares Recently?

By
Simply Wall St
Published
May 09, 2022
ASX:PRU
Source: Shutterstock

We'd be surprised if Perseus Mining Limited (ASX:PRU) shareholders haven't noticed that the Independent Non-Executive Chairman, Terence Harvey, recently sold AU$525k worth of stock at AU$1.75 per share. That sale was 23% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Perseus Mining

Perseus Mining Insider Transactions Over The Last Year

Notably, that recent sale by Terence Harvey is the biggest insider sale of Perseus Mining shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$1.83. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. This single sale was just 23% of Terence Harvey's stake.

Perseus Mining insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
ASX:PRU Insider Trading Volume May 9th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Perseus Mining insiders own 0.6% of the company, worth about AU$14m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Perseus Mining Tell Us?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Perseus Mining makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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 - Perseus Mining has 1 warning sign we think you should be aware of.

Of course Perseus 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.

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