We wouldn't blame Rio Tinto Group (LON:RIO) shareholders if they were a little worried about the fact that Alfredo Barrios, the Chief Commercial Officer recently netted about UK£4.9m selling shares at an average price of UK£59.71. That diminished their holding by a very significant 72%, which arguably implies a strong desire to reallocate capital.
Rio Tinto Group Insider Transactions Over The Last Year
Notably, that recent sale by Alfredo Barrios is the biggest insider sale of Rio Tinto Group shares that we've seen in the last year. That means that even when the share price was below the current price of UK£61.19, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 72% of Alfredo Barrios's holding.
Rio Tinto Group insiders didn't buy any shares 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!
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Insider Ownership of Rio Tinto Group
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. Rio Tinto Group insiders own about UK£41m worth of shares. That equates to 0.04% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Rio Tinto Group Insiders?
An insider hasn't bought Rio Tinto Group stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Rio Tinto Group is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rio Tinto Group. For instance, we've identified 3 warning signs for Rio Tinto Group (1 is a bit concerning) you should be aware of.
Of course Rio Tinto Group 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, but not derivative transactions.
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