Shareholders May Not Overlook Bravo Mining Insiders Selling US$1.3m In Stock

While Bravo Mining Corp. (CVE:BRVO) shareholders have enjoyed a good week with stock up 15%, they need remain vigilant. The fact that insiders chose to dispose of US$1.3m worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Bravo Mining

The Last 12 Months Of Insider Transactions At Bravo Mining

The President, Simon Mottram, made the biggest insider sale in the last 12 months. That single transaction was for CA$750k worth of shares at a price of CA$5.00 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of CA$1.80. So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid CA$564k for 157.90k shares. On the other hand they divested 250.00k shares, for CA$1.3m. All up, insiders sold more shares in Bravo Mining than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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.

Have Bravo Mining Insiders Traded Recently?

There was only a small bit of insider buying, worth CA$4.7k, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Bravo Mining insiders own 54% of the company, currently worth about CA$96m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Bravo Mining Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Bravo Mining insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Bravo Mining (1 is significant!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.