Have Insiders Sold Silvercorp Metals Shares Recently?

We wouldn't blame Silvercorp Metals Inc. (TSE:SVM) shareholders if they were a little worried about the fact that Rui Feng, the Chairman & CEO recently netted about CA$2.4m selling shares at an average price of CA$11.91. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.9%.

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The Last 12 Months Of Insider Transactions At Silvercorp Metals

Notably, that recent sale by Rui Feng is the biggest insider sale of Silvercorp Metals shares that we've seen in the last year. That means that an insider was selling shares at below the current price (CA$12.00). 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 2.9% of Rui Feng's holding.

Silvercorp Metals insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Silvercorp Metals

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Does Silvercorp Metals 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. It appears that Silvercorp Metals insiders own 4.0% of the company, worth about CA$106m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Silvercorp Metals Tell Us?

Insiders sold Silvercorp Metals shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of 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. At Simply Wall St, we found 3 warning signs for Silvercorp Metals that deserve your attention before buying any shares.

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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.