Have Ero Copper Insiders Been Selling Stock?
We wouldn't blame Ero Copper Corp. (TSE:ERO) shareholders if they were a little worried about the fact that Lyle Braaten, the Independent Director recently netted about CA$1.0m selling shares at an average price of CA$50.78. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.9%.
The Last 12 Months Of Insider Transactions At Ero Copper
In the last twelve months, the biggest single sale by an insider was when the Independent Lead Director, John Wright, sold CA$1.4m worth of shares at a price of CA$41.50 per share. That means that even when the share price was below the current price of CA$46.92, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 7.8% of John Wright's holding.
In total, Ero Copper insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Ero Copper
I will like Ero Copper better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of Ero Copper
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 2.4% of Ero Copper shares, worth about CA$116m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Ero Copper Insiders?
An insider sold Ero Copper shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Ero Copper makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ero Copper. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Ero Copper.
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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.