When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Sierra Madre Gold and Silver Ltd.’s (CVE:SM) instance, it’s good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Sierra Madre Gold and Silver
Sierra Madre Gold and Silver Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO, President & Director Alexander Langer for CA$530k worth of shares, at about CA$0.65 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.37). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Sierra Madre Gold and Silver insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Sierra Madre Gold and Silver is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Our data indicates that Sierra Madre Gold and Silver insiders own about CA$5.0m worth of shares (which is 8.5% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Sierra Madre Gold and Silver Insiders?
It doesn’t really mean much that no insider has traded Sierra Madre Gold and Silver shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Sierra Madre Gold and Silver insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. When we did our research, we found 5 warning signs for Sierra Madre Gold and Silver (2 are significant!) that we believe deserve your full attention.
But note: Sierra Madre Gold and Silver may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
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