The President of Seabridge Gold Inc. (TSE:SEA), Jay Layman, Just Sold 76% Of Their Holding

We wouldn't blame Seabridge Gold Inc. (TSE:SEA) shareholders if they were a little worried about the fact that Jay Layman, the President recently netted about CA$732k selling shares at an average price of CA$24.39. Probably the most concerning element of the whole transaction is that the disposal amounted to 76% of their entire holding.

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The Last 12 Months Of Insider Transactions At Seabridge Gold

The insider, William Threlkeld, made the biggest insider sale in the last 12 months. That single transaction was for CA$2.1m worth of shares at a price of CA$26.21 each. So what is clear is that an insider saw fit to sell at around the current price of CA$23.29. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid CA$289k for 20.82k shares. But they sold 168.51k shares for CA$4.1m. All up, insiders sold more shares in Seabridge Gold than they bought, over the last year. 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: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 3.1% of Seabridge Gold shares, worth about CA$54m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Seabridge Gold Insiders?

Insiders haven't bought Seabridge Gold stock in the last three months, but there was some selling. 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. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Seabridge Gold (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.

Of course Seabridge Gold 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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