Endeavour Mining Corporation (TSE:EDV) shareholders (or potential shareholders) will be happy to see that the Independent Non-Executive Director, Naguib Onssy Sawiris, recently bought a whopping CA$14m worth of stock, at a price of CA$19.29. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 2.2%.
Endeavour Mining Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Non-Executive Director Naguib Onssy Sawiris was not their only trade of Endeavour Mining shares this year. They previously made a sale of -CA$25.9m worth of shares at a price of CA$19.84 per share. That means that an insider was selling shares at slightly below the current price (CA$21.65). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 3.9% of Naguib Onssy Sawiris's stake.
Naguib Onssy Sawiris bought 1.97m shares over the last 12 months at an average price of CA$20.23. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Endeavour Mining
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. Endeavour Mining insiders own about CA$750m worth of shares (which is 31% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Endeavour Mining Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Endeavour Mining insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! While we like knowing 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. At Simply Wall St, we found 1 warning sign for Endeavour Mining that deserve your attention before buying any shares.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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