Have Insiders Sold MAG Silver Corp. (TSE:MAG) Shares Recently?

Some MAG Silver Corp. (TSE:MAG) shareholders may be a little concerned to see that the Independent Director, Daniel MacInnis, recently sold a substantial CA$708k worth of stock at a price of CA$28.30 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.7%.

See our latest analysis for MAG Silver

The Last 12 Months Of Insider Transactions At MAG Silver

In fact, the recent sale by Independent Director Daniel MacInnis was not their only sale of MAG Silver shares this year. They previously made an even bigger sale of -CA$825k worth of shares at a price of CA$19.50 per share. That means that an insider was selling shares at slightly below the current price (CA$26.27). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 13% of Daniel MacInnis's holding.

In total, MAG Silver insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does MAG 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. We usually like to see fairly high levels of insider ownership. Insiders own 1.1% of MAG Silver shares, worth about CA$28m. 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 MAG Silver Insiders?

Insiders haven't bought MAG Silver stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. Every company has risks, and we've spotted 3 warning signs for MAG 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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