While it’s been a great week for CMX Gold & Silver Corp. (CSE:CXC) shareholders after stock gained 10.0%, company insiders might have missed out on those gains after selling stock earlier this year. The return on their investment would have been much higher had they held on to their stock.
Although we don’t think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
CMX Gold & Silver Insider Transactions Over The Last Year
In fact, the recent sale by Glen Alston was the biggest sale of CMX Gold & Silver shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (CA$0.28). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. This single sale was just 5.3% of Glen Alston’s stake.
Happily, we note that in the last year insiders paid CA$98k for 930.00k shares. On the other hand they divested 1.03m shares, for CA$146k. In total, CMX Gold & Silver insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for CMX Gold & Silver
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Insiders At CMX Gold & Silver Have Sold Stock Recently
We’ve seen more insider selling than insider buying at CMX Gold & Silver recently. In total, Chief Financial Officer Glen Alston sold CA$73k worth of shares in that time. On the other hand we note Chief Financial Officer Glen Alston bought CA$265 worth of shares. Since the selling really does outweigh the buying, we’d say that these transactions may suggest that some insiders feel the shares are not cheap.
Insider Ownership Of CMX Gold & Silver
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 37% of CMX Gold & Silver shares, worth about CA$8.2m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The CMX Gold & Silver Insider Transactions Indicate?
The stark truth for CMX Gold & Silver is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. So we’d only buy after careful consideration. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing CMX Gold & Silver. Our analysis shows 4 warning signs for CMX Gold & Silver (2 are a bit unpleasant!) and we strongly recommend you look at these before investing.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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.