Insiders Of Silver Storm Mining Reap Rewards After Their Investment Jumps Another CA$1.6m

Silver Storm Mining Ltd. (CVE:SVRS) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 26% resulting in a CA$22m addition to the company’s market value. As a result, their original purchase of CA$3.01m worth of stock is now worth CA$4.65m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See 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. We do like to see buying, but this purchase was made at well below the current price of CA$0.17. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Silver Storm Mining insiders bought shares during the last year, they didn't sell. 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!

Silver Storm Mining is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Silver Storm Mining Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Silver Storm Mining. insider Eric Sprott spent CA$3.0m on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.

Does Silver Storm Mining Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 18% of Silver Storm Mining shares, worth about CA$15m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

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. Given that insiders also own a fair bit of Silver Storm Mining we think they are probably pretty confident of 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. Case in point: We've spotted 4 warning signs for Silver Storm Mining you should be aware of, and 3 of them are significant.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.