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From what we can see, insiders were net buyers in Dolly Varden Silver Corporation's (CVE:DV ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Dolly Varden Silver
Dolly Varden Silver Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Eric Sprott for CA$2.0m worth of shares, at about CA$1.00 per share. So it's clear an insider wanted to buy, at around the current price, which is CA$1.02. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Dolly Varden Silver insider decided to buy shares at close to current prices. Eric Sprott was the only individual insider to buy during the last year.
Eric Sprott bought a total of 4.87m shares over the year at an average price of CA$0.82. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Dolly Varden Silver is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Dolly Varden Silver Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Dolly Varden Silver insiders own about CA$32m worth of shares. That equates to 9.9% of the company. 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 Dolly Varden Silver Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Dolly Varden Silver insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dolly Varden Silver. Be aware that Dolly Varden Silver is showing 2 warning signs in our investment analysis, and 1 of those is a bit unpleasant...