Bullish Highlander Silver Insiders Rewarded As Their Investment Rises To CA$15.4m

Insiders who bought Highlander Silver Corp. (TSE:HSLV) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$47m as a result of the stock's 10% gain over the same period. As a result, the stock they originally bought for CA$6.50m is now worth CA$15.4m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

The Last 12 Months Of Insider Transactions At Highlander Silver

Notably, that recent purchase by Independent Director Richard Warke was not the only time they bought Highlander Silver shares this year. Earlier in the year, they paid CA$1.40 per share in a CA$1.4m purchase. We do like to see buying, but this purchase was made at well below the current price of CA$3.88. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Highlander Silver insiders bought shares during the last year, they didn't sell. The average buy price was around CA$1.64. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Highlander Silver

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Highlander Silver Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Highlander Silver. In total, insiders bought CA$1.5m worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Does Highlander Silver Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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's great to see that Highlander Silver insiders own 31% of the company, worth about CA$155m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Highlander Silver Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Highlander Silver. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Highlander Silver. Every company has risks, and we've spotted 3 warning signs for Highlander Silver you should know about.

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.

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

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.