Bill Beament has been selling down his holdings in Northern Star Resources since 2018. He has made major insider share sales since last year, selling 2,460,000 shares in the Perth-based gold miner, as reported in a Change of Director’s Notice on March 2019. Insiders and investors became uneasy because of the insider share sales in Northern Star, but Beament was quick to assure that there will be no further sell downs.
Beament may have deceived some investors to think that he would not be selling more of his shares, but some insiders were not fooled. The prediction that Beament would again sell a portion of his holdings in his Perth-based gold miner was right after all.
Recently, he was reported to have sold half of his holdings in Northern Star and reduced it by 3,141,795 shares. According to a Change of Director’s Notice in June 2019, Beament is left with 3,141,793 shares and 3,000,000 Performance Rights in the gold mining company.
Questionable reasons for selling down
Investors are in doubt. Is Bill Beament’s most recent insider sale only due to a final Family Court settlement, or maybe an indication of the company’s imminent downfall? Reports say it is due to a Family Court settlement just like Beament’s sell down on March 2019, but some insiders arguably think there is an underlying reason to it.
Because of Beament’s share sell downs, some insiders begin to question his credibility and integrity. Would investors continue to trust Northern Star with their investments? If the company’s Executive Chairman has been selling his holdings, would it be wise for investors to sell their shares, as well? Will there be more selling of shares from Beament?
Bill Beament should be more transparent and announce that there will be no more sell down of shares, otherwise, investors may be driven to dump their investments, too. Beament’s major insider sales unnerve investors. They will be cashing out in no time if it continues.