After a 5.6% dip, insiders are undoubtedly glad they sold IAMGOLD Corporation (TSE:IMG)

By
Simply Wall St
Published
November 25, 2021
TSX:IMG
Source: Shutterstock

Insiders at IAMGOLD Corporation (TSE:IMG) sold US$364k worth of stock at an average price of US$4.10 a share over the past year, making the most of their investment. The company’s market cap plunged by CA$114m after price dropped by 5.6% last week but insiders were able to limit their loss to an extent.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for IAMGOLD

IAMGOLD Insider Transactions Over The Last Year

The Senior Vice President of Operations & Projects, Bruno Lemelin, made the biggest insider sale in the last 12 months. That single transaction was for CA$180k worth of shares at a price of CA$4.27 each. So we know that an insider sold shares at around the present share price of CA$4.03. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In total, IAMGOLD insiders sold more 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!

insider-trading-volume
TSX:IMG Insider Trading Volume November 25th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by 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. From our data, it seems that IAMGOLD insiders own 0.6% of the company, worth about CA$12m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At IAMGOLD Tell Us?

The fact that there have been no IAMGOLD insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by IAMGOLD insiders. But it's good to see that insiders own shares in the company. While we like knowing 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. You'd be interested to know, that we found 1 warning sign for IAMGOLD and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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