Insiders Could Have Profited By Holding onto Rusoro Mining Shares Despite 11% Drop

Rusoro Mining Ltd.'s (CVE:RML) stock price has dropped 11% in the previous week, but insiders who sold US$20m in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$1.27 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Rusoro Mining

Rusoro Mining Insider Transactions Over The Last Year

The Independent Director, Anthony Beruschi, made the biggest insider sale in the last 12 months. That single transaction was for CA$9.0m worth of shares at a price of CA$1.50 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CA$0.75). So it may not shed much light on insider confidence at current levels. Notably Anthony Beruschi was also the biggest buyer, having purchased CA$659k worth of shares.

In the last twelve months insiders purchased 509.00k shares for CA$659k. But they sold 15.63m shares for CA$20m. Over the last year we saw more insider selling of Rusoro Mining shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. 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: Most of them are flying under the radar).

Insider Ownership Of Rusoro Mining

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Rusoro Mining insiders own about CA$135m worth of shares. That equates to 26% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Rusoro Mining Tell Us?

It doesn't really mean much that no insider has traded Rusoro Mining shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Rusoro Mining insider transactions don't fill us with confidence. 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. At Simply Wall St, we've found that Rusoro Mining has 6 warning signs (4 don't sit too well with us!) that deserve your attention before going any further with your analysis.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.