Trade Alert: Senior Managing Partner Of Sprott Arthur Einav Has Sold Stock

Some Sprott Inc. (TSE:SII) shareholders may be a little concerned to see that the Senior Managing Partner, Arthur Einav, recently sold a substantial CA$5.6m worth of stock at a price of CA$79.99 per share. That sale reduced their total holding by 34% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Sprott

In fact, the recent sale by Arthur Einav was the biggest sale of Sprott shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of CA$79.55. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. 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.

Over the last year, we can see that insiders have bought 57.10k shares worth CA$3.4m. But insiders sold 454.52k shares worth CA$29m. 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!

Check out our latest analysis for Sprott

I will like Sprott better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Sprott

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. Sprott insiders own 7.2% of the company, currently worth about CA$149m based on the recent share price. 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 Does This Data Suggest About Sprott Insiders?

Unfortunately, there has been more insider selling of Sprott stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since Sprott is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. 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.

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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.