Chief Financial Officer Of Aura Minerals Sold 62% Of Their Shares

Some Aura Minerals Inc. (TSE:ORA) shareholders may be a little concerned to see that the Chief Financial Officer, Joao Cardoso, recently sold a substantial CA$801k worth of stock at a price of CA$16.03 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 62% of their entire holding.

View our latest analysis for Aura Minerals

Aura Minerals Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Operating Officer, Glauber Rosa-Luvizotto, sold CA$1.3m worth of shares at a price of CA$14.00 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$17.80. 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. 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. It is worth noting that this sale was only 32% of Glauber Rosa-Luvizotto's holding.

Insiders in Aura Minerals didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Aura Minerals Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Aura Minerals insiders own 3.3% of the company, worth about CA$41m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Aura Minerals Tell Us?

Insiders sold Aura Minerals shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Aura Minerals.

Of course Aura Minerals may not be the best stock to buy. So you may wish to see this free collection of high quality 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.