Keep An Eye On Bravo Mining As Insider Stock Selling Hits US$1.3m

While it’s been a great week for Bravo Mining Corp. (CVE:BRVO) shareholders after stock gained 11%, they should consider it with a grain of salt. Although prices were relatively low, insiders chose to sell US$1.3m worth of stock in the past 12 months. This could be a sign of impending weakness.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Bravo Mining

The Last 12 Months Of Insider Transactions At Bravo Mining

In the last twelve months, the biggest single sale by an insider was when the President, Simon Mottram, sold CA$750k worth of shares at a price of CA$5.00 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$3.10. So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 155.80k shares for CA$557k. But insiders sold 250.00k shares worth CA$1.3m. All up, insiders sold more shares in Bravo Mining 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Bravo Mining Insiders Bought Stock Recently

Over the last quarter, Bravo Mining insiders have spent a meaningful amount on shares. Overall, two insiders shelled out CA$75k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Does Bravo Mining 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. Bravo Mining insiders own about CA$174m worth of shares (which is 54% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Bravo Mining Tell Us?

The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Bravo Mining insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Bravo Mining has 3 warning signs (and 1 which is a bit concerning) we think you should know about.

Of course Bravo Mining 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.