Senior EVP & CFO Of Barrick Mining Sold 27% Of Their Shares

We wouldn't blame Barrick Mining Corporation (TSE:ABX) shareholders if they were a little worried about the fact that Graham Shuttleworth, the Senior EVP & CFO recently netted about CA$10m selling shares at an average price of CA$50.50. That's a big disposal, and it decreased their holding size by 27%, which is notable but not too bad.

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Barrick Mining Insider Transactions Over The Last Year

Notably, that recent sale by Graham Shuttleworth is the biggest insider sale of Barrick Mining shares that we've seen in the last year. That means that even when the share price was slightly below the current price of CA$50.80, an insider wanted to cash in some shares. 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. It is worth noting that this sale was only 27% of Graham Shuttleworth's holding.

Happily, we note that in the last year insiders paid CA$23m for 903.78k shares. On the other hand they divested 521.57k shares, for CA$24m. All up, insiders sold more shares in Barrick Mining than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Barrick Mining

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. Barrick Mining insiders own 0.3% of the company, currently worth about CA$291m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Barrick Mining Tell Us?

Insiders sold Barrick Mining shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Barrick Mining is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Barrick Mining. In terms of investment risks, we've identified 1 warning sign with Barrick Mining and understanding it should be part of your investment process.

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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.