Have Insiders Sold Lundin Mining Corporation (TSE:LUN) Shares Recently?

By
Simply Wall St
Published
February 24, 2022
TSX:LUN
Source: Shutterstock

We'd be surprised if Lundin Mining Corporation (TSE:LUN) shareholders haven't noticed that the Senior VP & CFO, Jinhee Magie, recently sold CA$583k worth of stock at CA$11.66 per share. The eyebrow raising move amounted to a reduction of 20% in their holding.

View our latest analysis for Lundin Mining

Lundin Mining Insider Transactions Over The Last Year

The Independent Director, Jack O. Lundin, made the biggest insider sale in the last 12 months. That single transaction was for CA$597k worth of shares at a price of CA$14.93 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$11.54. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 73.60k shares for CA$726k. But insiders sold 115.00k shares worth CA$1.5m. All up, insiders sold more shares in Lundin Mining than they bought, over the last year. 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!

insider-trading-volume
TSX:LUN Insider Trading Volume February 24th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Lundin Mining

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.4% of Lundin Mining shares, worth about CA$36m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Lundin Mining Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Lundin Mining, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Lundin Mining makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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. You'd be interested to know, that we found 1 warning sign for Lundin Mining and we suggest you have a look.

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, but not derivative transactions.

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