Group COO Of Barrick Mining Sold 58% Of Their Shares
We wouldn't blame Barrick Mining Corporation (TSE:ABX) shareholders if they were a little worried about the fact that Mark Hill, the Group COO recently netted about CA$11m selling shares at an average price of CA$60.48. That diminished their holding by a very significant 58%, which arguably implies a strong desire to reallocate capital.
The Last 12 Months Of Insider Transactions At Barrick Mining
In fact, the recent sale by Mark Hill was the biggest sale of Barrick Mining shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of CA$56.98. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last twelve months insiders purchased 660.21k shares for CA$40m. But they sold 1.18m shares for CA$69m. All up, insiders sold more shares in Barrick Mining than they bought, over the last year. 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!
Check out our latest analysis for Barrick Mining
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Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Barrick Mining insiders own 0.3% of the company, currently worth about CA$262m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Barrick Mining Insider Transactions Indicate?
Unfortunately, there has been more insider selling of Barrick Mining stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since Barrick Mining is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Barrick Mining has 2 warning signs and it would be unwise to ignore them.
Of course Barrick Mining 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.