Trade Alert: Independent Chairman Of Wheaton Precious Metals George Brack Has Sold Stock

We wouldn't blame Wheaton Precious Metals Corp. (TSE:WPM) shareholders if they were a little worried about the fact that George Brack, the Independent Chairman recently netted about CA$1.8m selling shares at an average price of CA$121. Probably the most concerning element of the whole transaction is that the disposal amounted to 62% of their entire holding.

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The Last 12 Months Of Insider Transactions At Wheaton Precious Metals

Notably, that recent sale by George Brack is the biggest insider sale of Wheaton Precious Metals shares that we've seen in the last year. That means that even when the share price was slightly below the current price of CA$123, an insider wanted to cash in some shares. 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. 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 62% of George Brack's holding.

Happily, we note that in the last year insiders paid CA$117k for 977.00 shares. But insiders sold 47.29k shares worth CA$5.5m. All up, insiders sold more shares in Wheaton 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!

Check out our latest analysis for Wheaton Precious Metals

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Does Wheaton Precious Metals Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.1% of Wheaton Precious Metals shares, worth about CA$64m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Wheaton Precious Metals Insiders?

Unfortunately, there has been more insider selling of Wheaton Precious Metals stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Wheaton Precious Metals is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Wheaton Precious Metals and understanding this should be part of your investment process.

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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.