Don't Ignore The Insider Selling In Fortuna Mining
Some Fortuna Mining Corp. (TSE:FVI) shareholders may be a little concerned to see that the Co-Founder, Jorge Ganoza Durant, recently sold a substantial CA$1.1m worth of stock at a price of CA$13.94 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.3%.
The Last 12 Months Of Insider Transactions At Fortuna Mining
The Chief Operating Officer of West Africa, David Whittle, made the biggest insider sale in the last 12 months. That single transaction was for CA$1.5m worth of shares at a price of CA$15.00 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (CA$13.49). So it may not tell us anything about how insiders feel about the current share price.
Over the last year we saw more insider selling of Fortuna Mining shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Fortuna Mining
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Does Fortuna Mining Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Fortuna Mining insiders own 1.1% of the company, worth about CA$42m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Fortuna Mining Insider Transactions Indicate?
Insiders sold Fortuna Mining shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Fortuna Mining is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. While conducting our analysis, we found that Fortuna Mining has 1 warning sign and it would be unwise to ignore this.
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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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