Have Silvercorp Metals Insiders Been Selling Stock?

Anyone interested in Silvercorp Metals Inc. (TSE:SVM) should probably be aware that the Chairman & CEO, Rui Feng, recently divested CA$641k worth of shares in the company, at an average price of CA$6.41 each. However, the silver lining is that the sale only reduced their total holding by 1.5%, so we're hesitant to read anything much into it, on its own.

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Silvercorp Metals Insider Transactions Over The Last Year

In fact, the recent sale by Chairman & CEO Rui Feng was not their only sale of Silvercorp Metals shares this year. They previously made an even bigger sale of -CA$893k worth of shares at a price of CA$6.02 per share. That means that an insider was selling shares at slightly below the current price (CA$7.00). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 2.3% of Rui Feng's holding.

Over the last year we saw more insider selling of Silvercorp Metals shares, than buying. 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!

Check out our latest analysis for Silvercorp Metals

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

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Silvercorp Metals insiders own about CA$59m worth of shares. That equates to 3.8% of the company. 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 stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. But since Silvercorp Metals is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Silvercorp Metals. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Silvercorp Metals.

But note: Silvercorp Metals 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.

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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.