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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Andean Silver Limited's (ASX:ASL) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Andean Silver Insider Transactions Over The Last Year
The insider Stephen Parsons made the biggest insider purchase in the last 12 months. That single transaction was for AU$500k worth of shares at a price of AU$0.45 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$1.35. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Andean Silver insiders may have bought shares in the last year, but they didn't sell any. 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!
See our latest analysis for Andean Silver
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Andean Silver
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Andean Silver insiders own 17% of the company, worth about AU$36m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Andean Silver Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Andean Silver and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Andean Silver.