Independent Director Of Prime Mining Sold 80% Of Their Shares

We wouldn't blame Prime Mining Corp. (TSE:PRYM) shareholders if they were a little worried about the fact that Paul Sweeney, the Independent Director recently netted about CA$902k selling shares at an average price of CA$1.50. Probably the most concerning element of the whole transaction is that the disposal amounted to 80% of their entire holding.

View our latest analysis for Prime Mining

Prime Mining Insider Transactions Over The Last Year

Notably, that recent sale by Paul Sweeney is the biggest insider sale of Prime Mining shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$1.64. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 80% of Paul Sweeney's stake.

Over the last year, we can see that insiders have bought 50.30k shares worth CA$63k. But they sold 881.30k shares for CA$1.5m. Over the last year we saw more insider selling of Prime Mining shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Prime Mining insiders own about CA$54m worth of shares. That equates to 22% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Prime Mining Insiders?

An insider sold Prime Mining shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. Every company has risks, and we've spotted 4 warning signs for Prime Mining (of which 2 are potentially serious!) you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.