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Silver Storm Mining Ltd. (CVE:SVRS) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 11% decline in the stock price. After accounting for the recent loss, the CA$3.50m worth of shares they purchased is now worth CA$4.10m, suggesting a good return on their investment.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Silver Storm Mining
The Last 12 Months Of Insider Transactions At Silver Storm Mining
In the last twelve months, the biggest single purchase by an insider was when insider Eric Sprott bought CA$3.0m worth of shares at a price of CA$0.11 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.13), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Eric Sprott bought a total of 32.83m shares over the year at an average price of CA$0.11. 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 always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Silver Storm Mining Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at Silver Storm Mining, over the last three months. We can see that insider Eric Sprott paid CA$500k for shares in the company. But Independent Director Thomas English sold shares worth CA$197k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Insider Ownership Of Silver Storm Mining
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 18% of Silver Storm Mining shares, worth about CA$11m. 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 Silver Storm Mining Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. 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. When combined with notable insider ownership, these factors suggest Silver Storm Mining insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Silver Storm Mining has 6 warning signs (3 are potentially serious!) that deserve your attention before going any further with your analysis.