Insider Sellers Might Regret Selling MAG Silver Shares at a Lower Price Than Current Market Value

MAG Silver Corp.'s (TSE:MAG) stock price has dropped 15% in the previous week, but insiders who sold US$1.1m in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$21.87 is still below the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

The Last 12 Months Of Insider Transactions At MAG Silver

Over the last year, we can see that the biggest insider sale was by the President, George Paspalas, for CA$1.1m worth of shares, at about CA$21.87 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of CA$19.08. So it is hard to draw any strong conclusion from it. George Paspalas was the only individual insider to sell shares in the last twelve months.

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!

Check out our latest analysis for MAG Silver

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does MAG Silver Boast High Insider Ownership?

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests MAG Silver insiders own 0.4% of the company, worth about CA$7.1m. I generally like to see higher levels of ownership.

So What Do The MAG Silver Insider Transactions Indicate?

The fact that there have been no MAG Silver insider transactions recently certainly doesn't bother us. The insider transactions at MAG Silver are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MAG Silver. Case in point: We've spotted 2 warning signs for MAG Silver you should be aware of.

But note: MAG 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.

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.