Ero Copper Insiders' Sales Raise Red Flags for Shareholders

Recent transactions involving Ero Copper Corp's (TSE:ERO) insiders have raised concerns among investors. Lyle Braaten, an Independent Director, sold approximately CA$1.0m worth of shares at an average price of CA$50.78. Although this reduced his holding by 7.9%, he still retains a significant stake in the company.

However, when looking at insider transactions over the past year, it appears that more Ero Copper insiders have sold their shares than bought them. The largest single sale was made by John Wright, who sold CA$1.4m worth of shares at CA$41.50 per share. This suggests that even when the share price was lower than its current value of CA$46.92, insiders were willing to sell.

While insider selling is not always a negative sign, it can be a cause for concern if it implies that insiders believe the shares are fully valued. Ero Copper's financials show that the company makes money and is growing profits, but our analysis of their transactions doesn't necessarily give us confidence in the company.