Multiple insiders secured a larger position in Discovery Silver Corp. (TSE:DSV) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company’s prospects.
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.
View our latest analysis for Discovery Silver
Discovery Silver Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President Anthony Makuch bought CA$1.2m worth of shares at a price of CA$1.20 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.72). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
Over the last year, we can see that insiders have bought 1.03m shares worth CA$1.2m. But insiders sold 30.00k shares worth CA$22k. In total, Discovery Silver insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Discovery Silver is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Discovery Silver Have Sold Stock Recently
We have seen a bit of insider selling at Discovery Silver, over the last three months. Independent Director Daniel Vickerman divested only CA$22k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn’t bother us.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 24% of Discovery Silver shares, worth about CA$69m. 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 Do The Discovery Silver Insider Transactions Indicate?
Our data shows a little more insider selling, but no insider buying, in the last three months. However, the sales are not big enough to concern us at all. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Discovery Silver and their transactions don’t cause us concern. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Discovery Silver. When we did our research, we found 3 warning signs for Discovery Silver (2 are potentially serious!) that we believe deserve your full attention.
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.