Have Triple Flag Precious Metals Insiders Been Selling Stock?
Some Triple Flag Precious Metals Corp. (TSE:TFPM) shareholders may be a little concerned to see that the Chief Operating Officer, James Dendle, recently sold a substantial CA$1.1m worth of stock at a price of CA$44.22 per share. However, that sale only accounted for 5.5% of their holding, so arguably it doesn't say much about their conviction.
Triple Flag Precious Metals Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Director, Geoffrey Burns, for CA$4.5m worth of shares, at about CA$44.57 per share. So we know that an insider sold shares at around the present share price of CA$43.67. While insider selling is a negative, to us, it is more negative if the shares are sold 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.
Over the last year we saw more insider selling of Triple Flag Precious Metals shares, than buying. 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!
View our latest analysis for Triple Flag Precious Metals
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does Triple Flag Precious Metals Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Triple Flag Precious Metals insiders own 1.8% of the company, currently worth about CA$163m 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 Does This Data Suggest About Triple Flag Precious Metals Insiders?
An insider sold Triple Flag Precious Metals shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Triple Flag Precious Metals is profitable and growing, we're not too worried by this. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Triple Flag Precious Metals has 2 warning signs (and 1 which can't be ignored) we think you should know about.
But note: Triple Flag Precious Metals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.