This Insider Has Just Sold Shares In Silvercorp Metals

Some Silvercorp Metals Inc. (TSE:SVM) shareholders may be a little concerned to see that the Chairman & CEO, Rui Feng, recently sold a substantial CA$893k worth of stock at a price of CA$5.96 per share. However, that sale only accounted for 2.3% of their holding, so arguably it doesn't say much about their conviction.

The Last 12 Months Of Insider Transactions At Silvercorp Metals

In fact, the recent sale by Rui Feng was the biggest sale of Silvercorp Metals shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of CA$5.79. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

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. 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

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 Of Silvercorp Metals

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$47m worth of shares. That equates to 3.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Silvercorp Metals Insider Transactions Indicate?

Insiders sold Silvercorp Metals shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Silvercorp Metals is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Silvercorp Metals has 2 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.