Don't Ignore The Insider Selling In Bravo Mining

We'd be surprised if Bravo Mining Corp. (CVE:BRVO) shareholders haven't noticed that the Executive Vice President of Corporate Development, Alexandre Augusto Penha, recently sold CA$221k worth of stock at CA$2.21 per share. That sale was 15% of their holding, so it does make us raise an eyebrow.

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Bravo Mining Insider Transactions Over The Last Year

In fact, the recent sale by Alexandre Augusto Penha was the biggest sale of Bravo Mining shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of CA$2.75, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 15% of Alexandre Augusto Penha's holding.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Bravo Mining

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Bravo Mining insiders own 53% of the company, worth about CA$157m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Bravo Mining Tell Us?

The insider sales have outweighed the insider buying, at Bravo Mining, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bravo Mining. At Simply Wall St, we've found that Bravo Mining has 5 warning signs (2 make us uncomfortable!) that deserve your attention before going any further with your analysis.

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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.