Executive Chairman Richard Warke Just Bought A Handful Of Shares In Solaris Resources Inc. (TSE:SLS)

December 10, 2021
  •  Updated
May 03, 2022
TSX:SLS
Source: Shutterstock

Solaris Resources Inc. (TSE:SLS) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, Richard Warke, recently bought a whopping CA$2.6m worth of stock, at a price of CA$13.05. While that only increased their holding size by 0.6%, it is still a big swing by our standards.

See our latest analysis for Solaris Resources

Solaris Resources Insider Transactions Over The Last Year

Notably, that recent purchase by Executive Chairman Richard Warke was not the only time they bought Solaris Resources shares this year. They previously made an even bigger purchase of CA$58m worth of shares at a price of CA$8.25 per share. We do like to see buying, but this purchase was made at well below the current price of CA$13.84. 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.

Happily, we note that in the last year insiders paid CA$107m for 14.91m shares. But insiders sold 220.11k shares worth CA$1.6m. Overall, Solaris Resources insiders were net buyers during the last year. They paid about CA$7.16 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

insider-trading-volume
TSX:SLS Insider Trading Volume December 10th 2021

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Solaris Resources Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Solaris Resources insiders own 41% of the company, currently worth about CA$623m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Solaris Resources Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Solaris Resources. Looks promising! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 3 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Solaris Resources.

Of course Solaris Resources 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, but not derivative transactions.

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About TSX:SLS

Solaris Resources

Solaris Resources Inc. engages in acquisition, exploration, and development of mineral properties.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation0
Future Growth0
Past Performance0
Financial Health4
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Adequate balance sheet with weak fundamentals.