Investors who take an interest in Sierra Madre Gold and Silver Ltd. (CVE:SM) should definitely note that the Chief Financial Officer, Kenneth Scott, recently paid CA$0.65 per share to buy CA$250k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 240%, potentially signalling some real optimism.
View our latest analysis for Sierra Madre Gold and Silver
The Last 12 Months Of Insider Transactions At Sierra Madre Gold and Silver
The CEO, President & Director Alexander Langer made the biggest insider purchase in the last 12 months. That single transaction was for CA$276k worth of shares at a price of CA$0.65 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.38). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 7.2% of Sierra Madre Gold and Silver shares, worth about CA$3.7m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Sierra Madre Gold and Silver Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Sierra Madre Gold and Silver insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Sierra Madre Gold and Silver has 5 warning signs (and 3 which are a bit unpleasant) we think you should know about.