53% Of This Calibre Mining Insider's Holdings Were Sold

Looking at Calibre Mining Corp.'s (TSE:CXB ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

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.

View our latest analysis for Calibre Mining

Calibre Mining Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Clive Johnson, for CA$504k worth of shares, at about CA$1.95 per share. That means that an insider was selling shares at slightly below the current price (CA$3.09). 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. We note that the biggest single sale was 53% of Clive Johnson's holding. Clive Johnson was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 153.05k shares worth CA$274k. On the other hand they divested 258.50k shares, for CA$504k. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Calibre Mining 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

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Calibre Mining insiders own 1.9% of the company, worth about CA$51m. 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 Calibre Mining Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Calibre Mining shares in the last quarter. Our analysis of Calibre Mining insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 3 warning signs for Calibre Mining (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.

But note: Calibre Mining may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.