Yahoo Finance Insiders Of Silver Storm Mining Reap Rewards After Their Investment Jumps Another CA$1.6m
Last week, Silver Storm Mining Ltd. (CVE:SVRS) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 26% last week, resulting in a CA$22m increase in the company's market worth, implying a 54% gain on their initial purchase. Put another way, the original CA$3.01m acquisition is now worth CA$4.65m.
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.
Check out our latest analysis for Silver Storm Mining
The Last 12 Months Of Insider Transactions At Silver Storm Mining
In fact, the recent purchase by Eric Sprott was the biggest purchase of Silver Storm Mining shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.17. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Silver Storm Mining insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Insiders At Silver Storm Mining Have Bought Stock Recently
Over the last quarter, Silver Storm Mining insiders have spent a meaningful amount on shares. We can see that insider Eric Sprott paid CA$3.0m for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.
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. It appears that Silver Storm Mining insiders own 18% of the company, worth about CA$15m. 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 Does This Data Suggest About Silver Storm Mining Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Silver Storm Mining shares, given these transactions (along with notable insider ownership of the company). 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. Be aware that Silver Storm Mining is showing 4 warning signs in our investment analysis, and 3 of those are a bit unpleasant...
Of course Silver Storm Mining may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
