This Insider Has Just Sold Shares In Lundin Gold

We wouldn't blame Lundin Gold Inc. (TSE:LUG) shareholders if they were a little worried about the fact that Charles Ashley Heppenstall, the Independent Lead Director recently netted about CA$4.3m selling shares at an average price of CA$44.77. That's a big disposal, and it decreased their holding size by 17%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Lundin Gold

Notably, that recent sale by Charles Ashley Heppenstall is the biggest insider sale of Lundin Gold shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of CA$88.80. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 17% of Charles Ashley Heppenstall's holding.

Happily, we note that in the last year insiders paid CA$1.9m for 65.15k shares. On the other hand they divested 376.77k shares, for CA$19m. All up, insiders sold more shares in Lundin Gold than they bought, over the last year. The sellers received a price of around US$50.17, on average. We don't gain confidence from insider selling below the recent share price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Lundin Gold

I will like Lundin Gold 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 Of Lundin 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Lundin Gold insiders own about CA$180m worth of shares (which is 0.8% of the company). 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 Lundin Gold Tell Us?

Insiders sold Lundin Gold shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Lundin Gold is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. For example - Lundin Gold has 1 warning sign we think you should be aware of.

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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.