Have Insiders Sold Triple Flag Precious Metals Shares Recently?

Anyone interested in Triple Flag Precious Metals Corp. (TSE:TFPM) should probably be aware that the Vice President of Finance, Eban Bari, recently divested CA$419k worth of shares in the company, at an average price of CA$23.15 each. That sale was 11% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Triple Flag Precious Metals

Triple Flag Precious Metals Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Geoffrey Burns, sold CA$2.5m worth of shares at a price of CA$18.75 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$24.25. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 6.4% of Geoffrey Burns's holding.

In the last twelve months insiders purchased 22.10k shares for CA$382k. On the other hand they divested 382.13k shares, for CA$7.2m. All up, insiders sold more shares in Triple Flag Precious Metals 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Triple Flag Precious Metals insiders own 3.6% of the company, worth about CA$173m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Triple Flag Precious Metals Insiders?

The stark truth for Triple Flag Precious Metals is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Triple Flag Precious Metals has 3 warning signs and it would be unwise to ignore them.

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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.