Senior Managing Partner John Ciampaglia Sold A Bunch Of Shares In Sprott

Some Sprott Inc. (TSE:SII) shareholders may be a little concerned to see that the Senior Managing Partner, John Ciampaglia, recently sold a substantial CA$3.0m worth of stock at a price of CA$60.55 per share. That sale reduced their total holding by 39% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Sprott

The Last 12 Months Of Insider Transactions At Sprott

The insider, Arthur Rule, made the biggest insider sale in the last 12 months. That single transaction was for CA$4.3m worth of shares at a price of CA$57.20 each. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$60.28. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 2.8% of Arthur Rule's holding.

Over the last year we saw more insider selling of Sprott shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Sprott insiders own 7.8% of the company, worth about CA$121m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Sprott Insider Transactions Indicate?

The stark truth for Sprott is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Sprott makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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. Case in point: We've spotted 2 warning signs for Sprott you should be aware of.

Of course Sprott 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.

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

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.