With Hochschild Mining plc (LON: HOC)) down 5.6% this week, insiders could find some consolation after selling $ 1.3 million of shares earlier this year.

Insider at Hochschild Mining plc (LON: HOC) sold 1.3 million shares last year after the company’s share price fell 5.6% last week, the company’s market value declined £ 40 million, but insiders mitigated their losses.

While we would never suggest that investors base their decisions solely on the actions of a company’s directors, it is logical that they should be careful about whether insiders are buying or selling stocks.

Check out our latest analysis for Hochschild Mining

The last 12 months of insider trading at Hochschild Mining

Last year we saw that the largest insider sale by CEO and Director Ignacio Bustamante was for £ 1.3m worth of shares (approximately £ 2.26 per share). We generally hate insider selling, but the lower the selling price, the more worried we are. The silver lining is that this sell-off was above last price (£ 1.29). So it may not tell us anything about how insiders think of the current stock price. Ignacio Bustamante was the only single insider to sell in the last year.

The graph below shows insider transactions (by companies and individuals) over the past year. If you want to know exactly who sold how much when, just click on the graphic below!

If you are like me then you will not want to miss that for free List of Growing Companies Buying Insiders.

Inside ownership

Another way to test the correspondence between a company’s executives and other shareholders is to see how many stocks they own. A high proportion of insiders means that company management is often more responsive to the interests of shareholders. Hochschild Mining insiders own approximately £ 256 million worth of shares (39% of the company). Most shareholders would be happy with this type of insider ownership as it suggests that management’s incentives are well aligned with those of other shareholders.

So what are Hochschild Mining’s insider deals showing?

We certainly don’t mind that there have been no insider transactions from Hochschild Mining lately. It is encouraging that insiders own a lot of stocks, but we would love to see more insider buying since Hochschild Mining’s final year of insider trading has not left us with confidence. So it is helpful to know what insiders are doing in relation to buying or selling, but it is also helpful to understand the risks a particular company is facing. During our analysis, we found that Hochschild Mining 3 warning signs and it would be unwise to ignore them.

Sure Hochschild Mining may not be the best stock to buy. You might want to see this for free Collection of high quality companies.

For the purposes of this article, insiders are persons who report their transactions to the competent supervisory authority. We currently account for open market transactions and private dispositions, but no derivative transactions.

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This article from Simply Wall St is of a general nature. We only provide comments based on historical data and analyst projections using an unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. Our goal is to provide you with long-term, focused analysis based on fundamentals. Note that our analysis may not take into account the latest company announcements or quality material, which may be sensitive to the price. Simply Wall St has no position in any of the stocks mentioned.