Prime Mining Falls To CA$1.34, But Insiders Sold At Lower Price

Prime Mining Corp.'s (TSE:PRYM) stock price has dropped 12% in the previous week, but insiders who sold CA$592k in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of CA$2.10 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Prime Mining

The Last 12 Months Of Insider Transactions At Prime Mining

In the last twelve months, the biggest single sale by an insider was when the Independent Chairman, William John, sold CA$473k worth of shares at a price of CA$2.05 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CA$1.34). So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 50.30k shares worth CA$63k. On the other hand they divested 281.30k shares, for CA$592k. Over the last year we saw more insider selling of Prime Mining shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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 Of Prime Mining

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. It appears that Prime Mining insiders own 22% of the company, worth about CA$45m. 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 Prime Mining Tell Us?

It doesn't really mean much that no insider has traded Prime Mining shares in the last quarter. We don't take much encouragement from the transactions by Prime Mining insiders. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Prime Mining. At Simply Wall St, we've found that Prime Mining has 3 warning signs (2 can't be ignored!) that deserve your attention before going any further with your analysis.

Of course Prime Mining 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.