Don't Ignore The Insider Selling In Americas Gold and Silver

Some Americas Gold and Silver Corporation (TSE:USA) shareholders may be a little concerned to see that the CEO & Chairman of the Board, Joseph Paul Huet, recently sold a substantial CA$8.3m worth of stock at a price of CA$6.36 per share. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Americas Gold and Silver

Notably, that recent sale by Joseph Paul Huet is the biggest insider sale of Americas Gold and Silver 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$6.33. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Americas Gold and Silver

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Does Americas Gold and Silver 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. We usually like to see fairly high levels of insider ownership. Americas Gold and Silver insiders own about CA$113m worth of shares. That equates to 5.8% 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.

So What Does This Data Suggest About Americas Gold and Silver Insiders?

Unfortunately, there has been more insider selling of Americas Gold and Silver stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Every company has risks, and we've spotted 2 warning signs for Americas Gold and Silver (of which 1 makes us a bit uncomfortable!) you should know about.

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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.