Trade Alert: Director Of SilverCrest Metals Pierre Beaudoin Has Sold Stock

We wouldn't blame SilverCrest Metals Inc. (TSE:SIL) shareholders if they were a little worried about the fact that Pierre Beaudoin, the Director recently netted about CA$933k selling shares at an average price of CA$7.47. Probably the most concerning element of the whole transaction is that the disposal amounted to 52% of their entire holding.

View our latest analysis for SilverCrest Metals

SilverCrest Metals Insider Transactions Over The Last Year

Notably, that recent sale by Pierre Beaudoin is the biggest insider sale of SilverCrest Metals shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of CA$7.46. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Happily, we note that in the last year insiders paid CA$115k for 17.50k shares. But they sold 381.58k shares for CA$2.9m. All up, insiders sold more shares in SilverCrest Metals than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that SilverCrest Metals insiders own 2.1% of the company, worth about CA$23m. 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 SilverCrest Metals Insiders?

Insiders sold SilverCrest Metals shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, SilverCrest Metals makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SilverCrest Metals. For example, SilverCrest Metals has 3 warning signs (and 1 which is significant) we think you should know about.

Of course SilverCrest Metals 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.