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Have Insiders Been Buying Coeur Mining, Inc. (NYSE:CDE) Shares This Year?

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NYSE:CDE), you may well want to know whether insiders have been buying or selling.” data-reactid=”28″ type=”text”>We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Coeur Mining, Inc. (NYSE:CDE), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise’.

View our latest analysis for Coeur Mining ” data-reactid=”36″ type=”text”> View our latest analysis for Coeur Mining

Coeur Mining Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Sebastian Edwards, sold US$112k worth of shares at a price of US$5.21 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$8.33. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it’s only a weak signal. It is worth noting that this sale was only 16% of Sebastian Edwards’s holding.

In the last twelve months insiders purchased 121.85k shares for US$360k. But insiders sold 35.61k shares worth US$199k. Overall, Coeur Mining insiders were net buyers during the last year. They paid about US$2.96 on average. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today’s levels. 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!

insider-trading-volume

list of growing companies with recent insider purchasing, could be just the ticket.” data-reactid=”52″ type=”text”>Coeur Mining is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Coeur Mining Insiders Bought Stock Recently

We saw some Coeur Mining insider buying shares in the last three months. Independent Non-Executive Chairman Robert Mellor shelled out US$16k for shares in that time. It’s great to see that insiders are only buying, not selling. But the amount invested in the last three months isn’t enough for us too put much weight on it, as a single factor.

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. 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 1.8% of Coeur Mining shares, worth about US$36m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Coeur Mining Tell Us?

2 warning signs we think you should be aware of.” data-reactid=”62″ type=”text”>We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Coeur Mining and their transactions don’t cause us concern. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For example – Coeur Mining has 2 warning signs we think you should be aware of.

list of interesting companies with high ROE and low debt.” data-reactid=”63″ type=”text”>But note: Coeur 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.

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. 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 [email protected].” data-reactid=”65″ type=”text”>

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. 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 [email protected].

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