Rusoro Mining Independent Director Anthony Beruschi Sells 28% Of Holding

We wouldn't blame Rusoro Mining Ltd. (CVE:RML) shareholders if they were a little worried about the fact that Anthony Beruschi, the Independent Director recently netted about CA$9.0m selling shares at an average price of CA$1.50. That's a big disposal, and it decreased their holding size by 28%, which is notable but not too bad.

Check out our latest analysis for Rusoro Mining

Rusoro Mining Insider Transactions Over The Last Year

In fact, the recent sale by Anthony Beruschi was the biggest sale of Rusoro Mining shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of CA$1.39. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year we saw more insider selling of Rusoro Mining shares, than buying. The sellers received a price of around US$1.25, on average. It's not too encouraging to see that insiders have sold at below the current price. Since insiders sell for many reasons, we wouldn't put too much weight on it. 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!

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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. We usually like to see fairly high levels of insider ownership. It's great to see that Rusoro Mining insiders own 25% of the company, worth about CA$205m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Rusoro Mining Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Rusoro Mining, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Rusoro Mining has 5 warning signs (3 are potentially serious!) 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.