Southern Copper Corporation (NYSE:SCCO) market cap drops to $40 billion, but insiders who sold $26 million in shares were able to cover their losses
Insiders appear to have made the most of their holdings by selling $26 million worth of Southern Copper Society (NYSE: SCCO) at an average selling price of $74.90 over the past year. The company’s market valuation shrank $2.7 billion after the stock price fell 6.2% over the past week, but insiders were spared painful losses.
While we don’t believe shareholders should simply follow insider trades, logic dictates that you pay attention to whether insiders are buying or selling shares.
See our latest analysis for Southern Copper
The last 12 months of insider trading at Southern Copper
Over the past year, we can see that the largest insider sale was by Chairman of the Board, German Larrea Mota-Velasco, for $15 million worth of shares, at around 74, $94 per share. We usually don’t like insider selling, but the lower the selling price, the more we’re concerned about it. It is reassuring that this sale was made at a price well above the current share price of US$51.87. So this may not shed much light on insider confidence at current levels.
Last year, Southern Copper insiders did not buy any shares of the company. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you want to know exactly who sold, how much and when, just click on the chart below!
If you like buying stocks that insiders are buying, rather than selling, then you might love this free list of companies. (Hint: insiders bought them).
Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the business for the long term. It appears that Southern Copper insiders own 0.08% of the company, worth around $31 million. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.
What could insider trading at Southern Copper tell us?
It doesn’t mean much that no insider traded shares of Southern Copper in the last quarter. Our analysis of Southern Copper’s insider trading leaves us cautious. But we like the fact that insiders own a good chunk of the business. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. Every business has risks, and we’ve spotted 4 warning signs for Southern Copper (of which 1 is worrying!) that you should know about.
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.