Have Amerigo Resources Insiders Been Selling Stock?
We wouldn't blame Amerigo Resources Ltd. (TSE:ARG) shareholders if they were a little worried about the fact that George Ireland, the Independent Director recently netted about CA$2.1m selling shares at an average price of CA$8.76. However, that sale only accounted for 2.4% of their holding, so arguably it doesn't say much about their conviction.
Amerigo Resources Insider Transactions Over The Last Year
Notably, that recent sale by George Ireland is the biggest insider sale of Amerigo Resources shares that we've seen in the last year. That means that an insider was selling shares at around the current price of CA$8.64. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. 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).
All up, insiders sold more shares in Amerigo Resources 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Amerigo Resources
I will like Amerigo Resources 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.
Does Amerigo Resources 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Amerigo Resources insiders own 12% of the company, worth about CA$167m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Amerigo Resources Insider Transactions Indicate?
Unfortunately, there has been more insider selling of Amerigo Resources stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Amerigo Resources is growing earnings. 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. 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 - Amerigo Resources has 2 warning signs we think you should be aware of.
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 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.