Despite CMX Gold & Silver Corp.'s recent decline, insiders have made a around CA$262k profit after buying earlier this year.

By
Simply Wall St
Published
March 19, 2022
CNSX:CXC
Source: Shutterstock

CMX Gold & Silver Corp. (CSE:CXC) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 11% decline in the stock price. After taking the recent loss into consideration, the CA$619k worth of stock they bought is now worth CA$881k, indicating that their investment yielded a positive return.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for CMX Gold & Silver

The Last 12 Months Of Insider Transactions At CMX Gold & Silver

Over the last year, we can see that the biggest insider purchase was by Chief Financial Officer Glen Alston for CA$216k worth of shares, at about CA$0.075 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.085), 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.

Over the last year, we can see that insiders have bought 10.37m shares worth CA$619k. On the other hand they divested 614.00k shares, for CA$60k. Overall, CMX Gold & Silver insiders were net buyers during the last year. Their average price was about CA$0.06. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
CNSX:CXC Insider Trading Volume March 19th 2022

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.

Are CMX Gold & Silver Insiders Buying Or Selling?

In the last three months, insiders bought CA$61k. That's only a tiny bit more than the sales, worth CA$60k. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Insider Ownership of CMX Gold & Silver

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. CMX Gold & Silver insiders own about CA$1.9m worth of shares. That equates to 35% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About CMX Gold & Silver Insiders?

We note that there's been a little more insider selling than buying, recently. But the difference isn't enough to have us worried. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think CMX Gold & Silver insiders are doubting the company, and they do own shares. 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. You'd be interested to know, that we found 6 warning signs for CMX Gold & Silver and we suggest you have a look.

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, but not derivative transactions.

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