Belo Sun Mining Insiders Benefitted From Selling Stock At CA$0.25

While Belo Sun Mining Corp (TSE:BSX) shareholders have had a good week with the stock up 17%, insiders can’t say the same having sold stock over the past year. They could have sold their shares at much higher prices and gotten a better return on their investment if they had waited.

Although we don’t think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Belo Sun Mining Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Mark Eaton, for CA$90k worth of shares, at about CA$0.25 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of CA$0.35. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. It is worth noting that this sale was only 3.0% of Mark Eaton’s holding. Mark Eaton was the only individual insider to sell shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Belo Sun Mining

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Our information indicates that Belo Sun Mining insiders own about CA$975k worth of shares. This level of insider ownership is notably low, and not very encouraging.

So What Does This Data Suggest About Belo Sun Mining Insiders?

The fact that there have been no Belo Sun Mining insider transactions recently certainly doesn’t bother us. The insider transactions at Belo Sun Mining are not inspiring us to buy. And we’re not picking up on high enough insider ownership to give us any comfort. 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. Every company has risks, and we’ve spotted 4 warning signs for Belo Sun Mining (of which 3 are a bit concerning!) you should know about.

But note: Belo Sun Mining 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.