Don't Ignore The Fact That This Insider Just Sold Some Shares In Royal Gold, Inc. (NASDAQ:RGLD)

We note that the Royal Gold, Inc. (NASDAQ:RGLD) VP & General Counsel, Randy Shefman, recently sold US$98k worth of stock for US$109 per share. It might not be a huge sale, but it did reduce their holding size 13%, hardly encouraging.

Check out our latest analysis for Royal Gold

The Last 12 Months Of Insider Transactions At Royal Gold

Notably, that recent sale by Randy Shefman is the biggest insider sale of Royal Gold shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$111, 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. It is worth noting that this sale was only 13% of Randy Shefman's holding.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Does Royal Gold Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Royal Gold insiders own about US$26m worth of shares. That equates to 0.4% 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 Royal Gold Tell Us?

An insider sold Royal Gold shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Royal Gold is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 2 warning signs for Royal Gold (1 shouldn't be ignored) you should be aware of.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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