We'd be surprised if Southern Copper Corporation (NYSE:SCCO) shareholders haven't noticed that the Special Independent Director, Luis Miguel Palomino Bonilla, recently sold US$206k worth of stock at US$68.73 per share. The eyebrow raising move amounted to a reduction of 40% in their holding.
Southern Copper Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chairman of the Board, German Larrea Mota-Velasco, sold US$32m worth of shares at a price of US$82.00 per share. 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 (US$66.98). So it is hard to draw any strong conclusion from it.
In the last year Southern Copper insiders didn't buy any company stock. 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!
I will like Southern Copper better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.1% of Southern Copper shares, worth about US$62m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Southern Copper Insider Transactions Indicate?
Insiders haven't bought Southern Copper stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Southern Copper makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Southern Copper. When we did our research, we found 4 warning signs for Southern Copper (1 doesn't sit too well with us!) that we believe deserve your full attention.
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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