Don't Ignore The Insider Selling In Alamos Gold

Anyone interested in Alamos Gold Inc. (TSE:AGI) should probably be aware that the Senior Vice President of Mexico, Luis Chavez-Martinez, recently divested CA$511k worth of shares in the company, at an average price of CA$52.69 each. However, the silver lining is that the sale only reduced their total holding by 9.9%, so we're hesitant to read anything much into it, on its own.

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Alamos Gold Insider Transactions Over The Last Year

In fact, the recent sale by Luis Chavez-Martinez was the biggest sale of Alamos Gold 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$52.56. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Over the last year, we can see that insiders have bought 7.25k shares worth CA$339k. On the other hand they divested 14.70k shares, for CA$862k. All up, insiders sold more shares in Alamos Gold than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Alamos Gold

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Insider Ownership Of Alamos Gold

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Alamos Gold insiders own about CA$77m worth of shares. That equates to 0.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Alamos Gold Tell Us?

Unfortunately, there has been more insider selling of Alamos Gold stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since Alamos Gold is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While it's good to be aware of 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 example - Alamos Gold has 1 warning sign we think you should be aware of.

Of course Alamos Gold 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 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.