Possible Bearish Signals With Triple Flag Precious Metals Insiders Disposing Stock

Over the past year, many Triple Flag Precious Metals Corp. (TSE:TFPM) insiders sold a significant stake in the company which may have piqued investors' interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Triple Flag Precious Metals

Triple Flag Precious Metals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Shaun Usmar, for CA$3.4m worth of shares, at about CA$21.34 per share. That means that even when the share price was below the current price of CA$22.57, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. We note that the biggest single sale was only 5.8% of Shaun Usmar's holding.

In the last twelve months insiders purchased 10.50k shares for CA$172k. On the other hand they divested 922.01k shares, for CA$19m. In total, Triple Flag Precious Metals insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insiders At Triple Flag Precious Metals Have Sold Stock Recently

The last quarter saw substantial insider selling of Triple Flag Precious Metals shares. In total, insiders dumped CA$471k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Triple Flag Precious Metals Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Triple Flag Precious Metals insiders own about CA$99m worth of shares. That equates to 2.2% 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 Do The Triple Flag Precious Metals Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Triple Flag Precious Metals. For example - Triple Flag Precious Metals has 1 warning sign we think you should be aware of.

Of course Triple Flag Precious Metals 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.