Trade Alert: Independent Director Of Andean Precious Metals Michele Ashby Has Sold Stock

Anyone interested in Andean Precious Metals Corp. (TSE:APM) should probably be aware that the Independent Director, Michele Ashby, recently divested CA$365k worth of shares in the company, at an average price of CA$6.48 each. The eyebrow raising move amounted to a reduction of 33% in their holding.

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The Last 12 Months Of Insider Transactions At Andean Precious Metals

The insider, Eric Sprott, made the biggest insider sale in the last 12 months. That single transaction was for CA$2.3m worth of shares at a price of CA$7.15 each. That means that even when the share price was below the current price of CA$8.64, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 1.4% of Eric Sprott's holding.

Happily, we note that in the last year insiders paid CA$83k for 68.00k shares. But they sold 947.68k shares for CA$6.0m. All up, insiders sold more shares in Andean Precious Metals than they bought, 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!

Check out our latest analysis for Andean Precious Metals

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Does Andean Precious Metals Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Andean Precious Metals insiders own 63% of the company, currently worth about CA$813m 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 Andean Precious Metals Tell Us?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Andean Precious Metals is growing earnings. 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. Every company has risks, and we've spotted 2 warning signs for Andean Precious Metals (of which 1 is a bit unpleasant!) you should know about.

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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.