Atalaya Mining Copper Chief Financial Officer Cesar Sanchez Sells 100% Of Holding

Some Atalaya Mining Copper, S.A. (LON:ATYM) shareholders may be a little concerned to see that the Chief Financial Officer, Cesar Sanchez, recently sold a substantial UK£542k worth of stock at a price of UK£5.42 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

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The Last 12 Months Of Insider Transactions At Atalaya Mining Copper

Notably, that recent sale by Cesar Sanchez is the biggest insider sale of Atalaya Mining Copper shares that we’ve seen in the last year. So it’s clear an insider wanted to take some cash off the table, even slightly below the current price of UK£5.47. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. This single sale was 100% of Cesar Sanchez’s stake.

Happily, we note that in the last year insiders paid UK£108k for 34.80k shares. On the other hand they divested 100.00k shares, for UK£542k. 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!

Check out our latest analysis for Atalaya Mining Copper

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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. We usually like to see fairly high levels of insider ownership. From our data, it seems that Atalaya Mining Copper insiders own 0.7% of the company, worth about UK£5.6m. However, it’s possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we’re not overly impressed by these holdings.

So What Do The Atalaya Mining Copper Insider Transactions Indicate?

An insider hasn’t bought Atalaya Mining Copper stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn’t bring confidence, either. But since Atalaya Mining Copper is profitable and growing, we’re not too worried by this. Insiders own relatively few shares in the company, and when you consider the sales, we’re not particularly excited about the stock. So we’re not rushing to buy, to say the least. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Every company has risks, and we’ve spotted 1 warning sign for Atalaya Mining Copper you should know about.

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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.