Highlander Silver Up 10%, Insider Buyers Are Up 130%

Insiders who bought Highlander Silver Corp. (CSE:HSLV) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$8.1m as a result of the stock's 10% gain over the same period. In other words, the original CA$3.29m purchase is now worth CA$7.56m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Highlander Silver

Highlander Silver Insider Transactions Over The Last Year

The Interim President Richard Warke made the biggest insider purchase in the last 12 months. That single transaction was for CA$3.0m worth of shares at a price of CA$0.45 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$1.07. 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.

In the last twelve months Highlander Silver insiders were buying shares, but not selling. 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!

Highlander 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.

Highlander Silver Insiders Bought Stock Recently

Over the last quarter, Highlander Silver insiders have spent a meaningful amount on shares. We can see that Director Jerrold Annett paid CA$243k for shares in the company. No-one sold. This makes one think the business has some good points.

Insider Ownership Of Highlander Silver

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 34% of Highlander Silver shares, worth about CA$29m. 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 Does This Data Suggest About Highlander Silver Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Highlander Silver 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. For example, Highlander Silver has 5 warning signs (and 2 which make us uncomfortable) we think you should know about.

Of course Highlander Silver 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.