Trade Alert: Executive VP and COO of Nunavut Of Agnico Eagle Mines Dominique Girard Has Sold Stock

We wouldn't blame Agnico Eagle Mines Limited (NYSE:AEM) shareholders if they were a little worried about the fact that Dominique Girard, the Executive VP and COO of Nunavut recently netted about US$1.0m selling shares at an average price of US$103. That's a big disposal, and it decreased their holding size by 28%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Agnico Eagle Mines

Over the last year, we can see that the biggest insider sale was by the CEO, President & Director, Ammar Al-Joundi, for US$12m worth of shares, at about US$68.65 per share. That means that an insider was selling shares at slightly below the current price (US$106). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 55% of Ammar Al-Joundi's holding. Notably Ammar Al-Joundi was also the biggest buyer, having purchased US$7.5m worth of shares.

Over the last year we saw more insider selling of Agnico Eagle Mines 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!

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Does Agnico Eagle Mines Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Agnico Eagle Mines insiders own 0.1% of the company, worth about US$57m. 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 Do The Agnico Eagle Mines Insider Transactions Indicate?

Insiders 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. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Agnico Eagle Mines.

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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.