Numerous Centerra Gold Insiders Sold Stock: Not A Positive Omen

A number of Centerra Gold Inc. (TSE:CG) insiders sold their shares in the last year, which may have raised concerns among investors. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Centerra Gold

The Executive Vice President of People, Claudia D'Orazio, made the biggest insider sale in the last 12 months. That single transaction was for CA$300k worth of shares at a price of CA$10.20 each. So we know that an insider sold shares at around the present share price of CA$9.60. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 36.28k shares worth CA$296k. On the other hand they divested 34.55k shares, for CA$342k. All up, insiders sold more shares in Centerra Gold than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Centerra Gold

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Are Centerra Gold Insiders Buying Or Selling?

We've only seen a tiny insider purchase valued at CA$3.3k, in the last three months. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.

Insider Ownership Of Centerra Gold

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own CA$4.9m worth of Centerra Gold stock, about 0.2% of the company. We consider this fairly low insider ownership.

So What Does This Data Suggest About Centerra Gold Insiders?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. The insider transactions at Centerra Gold are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Centerra Gold. Every company has risks, and we've spotted 2 warning signs for Centerra Gold 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.