Possible Bearish Signals With Endeavour Mining Insiders Disposing Stock

In the last year, many Endeavour Mining plc (TSE:EDV) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Endeavour Mining

Endeavour Mining Insider Transactions Over The Last Year

The President, Sebastien de Montessus, made the biggest insider sale in the last 12 months. That single transaction was for CA$6.3m worth of shares at a price of CA$36.27 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$27.25. So it is hard to draw any strong conclusion from it.

All up, insiders sold more shares in Endeavour Mining than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Endeavour Mining better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Endeavour Mining Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. It's great to see that Endeavour Mining insiders own 6.5% of the company, worth about CA$435m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Endeavour Mining Tell Us?

It doesn't really mean much that no insider has traded Endeavour Mining shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Endeavour Mining insiders selling. 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. Case in point: We've spotted 1 warning sign for Endeavour Mining you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.