Yahoo Finance Bullish Silver Mountain Resources Insiders Loaded Up On US$2.35m Of Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Silver Mountain Resources Inc.'s (CVE:AGMR) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Silver Mountain Resources
Silver Mountain Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman Jose Vizquerra Benavides bought CA$680k worth of shares at a price of CA$0.093 per share. That means that even when the share price was higher than CA$0.08 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that Jose Vizquerra Benavides was both the biggest buyer and the biggest seller.
Over the last year, we can see that insiders have bought 30.19m shares worth CA$2.4m. On the other hand they divested 3.29m shares, for CA$306k. Overall, Silver Mountain Resources insiders were net buyers during the last year. The average buy price was around CA$0.078. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Silver Mountain Resources Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Silver Mountain Resources insiders own 17% of the company, worth about CA$5.9m. 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 Does This Data Suggest About Silver Mountain Resources Insiders?
It doesn't really mean much that no insider has traded Silver Mountain Resources shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Silver Mountain Resources and we see no evidence to suggest they are worried about the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 5 warning signs for Silver Mountain Resources you should be aware of, and 4 of them are a bit unpleasant.
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.
