Over the past year, many AngloGold Ashanti plc( NYSE:AU ) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
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.
AngloGold Ashanti Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the CEO & Executive Director, Alberto Calderon, sold US$4.1m worth of shares at a price of US$106 per share. That means that even when the share price was slightly below the current price of US$106, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 22% of Alberto Calderon's stake.
Insiders in AngloGold Ashanti didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for AngloGold Ashanti
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AngloGold Ashanti Insiders Are Selling The Stock
The last quarter saw substantial insider selling of AngloGold Ashanti shares. In total, insiders dumped US$9.4m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does AngloGold Ashanti Boast High Insider Ownership?
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. We usually like to see fairly high levels of insider ownership. It appears that AngloGold Ashanti insiders own 0.08% of the company, worth about US$43m. 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 AngloGold Ashanti Insider Transactions Indicate?
Insiders sold AngloGold Ashanti shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since AngloGold Ashanti is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AngloGold Ashanti. In terms of investment risks, we've identified 2 warning signswith AngloGold Ashanti and understanding these should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere.So take a peek at this free list of interesting companies.
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.
