This Insider Has Just Sold Shares In Triple Flag Precious Metals

We wouldn't blame Triple Flag Precious Metals Corp. (TSE:TFPM) shareholders if they were a little worried about the fact that Geoffrey Burns, the Independent Director recently netted about CA$2.5m selling shares at an average price of CA$23.03. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.2%.

Check out 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 insider, Shaun Usmar, sold CA$3.4m worth of shares at a price of CA$21.34 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$21.82. 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. We note that the biggest single sale was only 5.8% of Shaun Usmar's holding.

Over the last year, we can see that insiders have bought 13.00k shares worth CA$214k. But they sold 922.01k shares for CA$19m. All up, insiders sold more shares in Triple Flag Precious Metals than they bought, over the last year. 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!

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Insider Ownership Of Triple Flag Precious Metals

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Triple Flag Precious Metals insiders own 2.2% of the company, worth about CA$99m. 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 Triple Flag Precious Metals Insiders?

Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Triple Flag Precious Metals. At Simply Wall St, we found 1 warning sign for Triple Flag Precious Metals that deserve your attention before buying any shares.

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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.