Have Amerigo Resources Insiders Been Selling Stock?
Anyone interested in Amerigo Resources Ltd. (TSE:ARG) should probably be aware that the President, Aurora Davidson, recently divested CA$165k worth of shares in the company, at an average price of CA$8.26 each. However, the silver lining is that the sale only reduced their total holding by 1.1%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Amerigo Resources
Over the last year, we can see that the biggest insider sale was by the Independent Director, George Ireland, for CA$1.4m worth of shares, at about CA$2.35 per share. That means that an insider was selling shares at slightly below the current price (CA$7.83). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 4.9% of George Ireland's holding.
In total, Amerigo Resources insiders sold more than they bought over the last year. 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!
View our latest analysis for Amerigo Resources
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Amerigo Resources insiders own 12% of the company, currently worth about CA$153m based on the recent share price. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Amerigo Resources. While conducting our analysis, we found that Amerigo Resources has 2 warning signs and it would be unwise to ignore them.
Of course Amerigo Resources 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.