Bullish Unico Silver Insiders Rewarded As Their Investment Rises To AU$1.24m

Unico Silver Limited (ASX:USL) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 16% resulting in a AU$7.5m addition to the company’s market value. In other words, the original AU$1.06m purchase is now worth AU$1.24m.

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.

Check out our latest analysis for Unico Silver

Unico Silver Insider Transactions Over The Last Year

The insider Eduardo Sergio Elsztain made the biggest insider purchase in the last 12 months. That single transaction was for AU$873k worth of shares at a price of AU$0.16 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.18), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Unico Silver insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Unico 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.

Unico Silver Insiders Bought Stock Recently

It's good to see that Unico Silver insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$1.0m worth of shares. This makes one think the business has some good points.

Insider Ownership Of Unico Silver

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 20% of Unico Silver shares, worth about AU$11m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Unico Silver Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Unico Silver we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Unico Silver is showing 3 warning signs in our investment analysis, and 2 of those shouldn't be ignored...

But note: Unico Silver may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com