Mako Mining Insiders Sold US$884k Of Shares Suggesting Hesitancy

Mako Mining Corp. (CVE:MKO) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Mako Mining

The Last 12 Months Of Insider Transactions At Mako Mining

In the last twelve months, the biggest single sale by an insider was when the CEO & Director, Akiba Leisman, sold CA$638k worth of shares at a price of CA$2.55 per share. So what is clear is that an insider saw fit to sell at around the current price of CA$2.39. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Notably Akiba Leisman was also the biggest buyer, having purchased CA$34k worth of shares.

All up, insiders sold more shares in Mako 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders At Mako Mining Have Sold Stock Recently

The last three months saw significant insider selling at Mako Mining. In total, CEO & Director Akiba Leisman sold CA$638k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Mako Mining

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own CA$3.2m worth of Mako Mining stock, about 2.1% of the company. We consider this fairly low insider ownership.

So What Does This Data Suggest About Mako Mining Insiders?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we'd only buy after very careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mako Mining. In terms of investment risks, we've identified 1 warning sign with Mako Mining and understanding it should be part of your investment process.

Of course Mako 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.