Yahoo Finance Possible Bearish Signals With Agnico Eagle Mines Insiders Disposing Stock
In the last year, many Agnico Eagle Mines Limited (NYSE:AEM) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Agnico Eagle Mines
The Last 12 Months Of Insider Transactions At Agnico Eagle Mines
Over the last year, we can see that the biggest insider sale was by the CEO, President & Director, Ammar Al-Joundi, for US$12m worth of shares, at about US$68.65 per share. That means that even when the share price was below the current price of US$73.28, an insider wanted to cash in some shares. 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. 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 55% of Ammar Al-Joundi's stake. Notably Ammar Al-Joundi was also the biggest buyer, having purchased US$8.1m worth of shares.
Over the last year, we can see that insiders have bought 121.45k shares worth US$8.1m. On the other hand they divested 302.78k shares, for US$20m. In total, Agnico Eagle Mines insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Agnico Eagle Mines Insiders Are Selling The Stock
Over the last three months, we've seen notably more insider selling, than insider buying, at Agnico Eagle Mines. In that time, insiders dumped US$20m worth of shares. On the other hand we note CEO, President & Director Ammar Al-Joundi bought US$7.5m worth of shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.1% of Agnico Eagle Mines shares, worth about US$42m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Agnico Eagle Mines Insider Transactions Indicate?
Unfortunately, there has been more insider selling of Agnico Eagle Mines stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Agnico Eagle Mines. At Simply Wall St, we found 4 warning signs for Agnico Eagle Mines that deserve your attention before buying any shares.
But note: Agnico Eagle Mines 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
