Trade Alert: Chief Operating Officer Of Mako Mining Jesse Munoz Has Sold Stock

Anyone interested in Mako Mining Corp. (CVE:MKO) should probably be aware that the Chief Operating Officer, Jesse Munoz, recently divested CA$283k worth of shares in the company, at an average price of CA$14.17 each. That sale was 30% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Mako Mining

In the last twelve months, the biggest single sale by an insider was when the CEO & Director, Akiba Leisman, sold CA$2.6m worth of shares at a price of CA$10.84 per share. That means that even when the share price was below the current price of CA$14.72, an insider wanted to cash in some shares. 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. It is worth noting that this sale was only 15% of Akiba Leisman’s holding. Notably Akiba Leisman was also the biggest buyer, having purchased CA$104k worth of shares.

All up, insiders sold more shares in Mako Mining than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Mako Mining

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Insider Ownership Of Mako Mining

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 3.0% of Mako Mining shares, worth about CA$38m. 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 Does This Data Suggest About Mako Mining Insiders?

An insider hasn’t bought Mako Mining stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn’t bring confidence, either. On the plus side, Mako Mining makes money, and is growing profits. While insiders do own shares, they don’t own a heap, and they have been selling. We’re in no rush to buy! 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. While conducting our analysis, we found that Mako Mining has 1 warning sign and it would be unwise to ignore this.

But note: Mako 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.