Alfredo Thorne Bought 5.5% More Shares In Silver Mountain Resources \

Whilst it may not be a huge deal, we thought it was good to see that the Silver Mountain Resources Inc. (CVE:AGMR) Independent Director, Alfredo Thorne, recently bought CA$78k worth of stock, for CA$0.14 per share. Although the purchase is not a big one, increasing their shareholding by only 5.5%, it can be interpreted as a good sign.

View our latest analysis for Silver Mountain Resources

The Last 12 Months Of Insider Transactions At Silver Mountain Resources

Over the last year, we can see that the biggest insider purchase was by Chairman Jose Vizquerra Benavides for CA$266k worth of shares, at about CA$0.30 per share. That means that an insider was happy to buy shares at above the current price of CA$0.15. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 3.79m shares worth CA$931k. On the other hand they divested 541.73k shares, for CA$205k. In the last twelve months there was more buying than selling by Silver Mountain Resources insiders. The average buy price was around CA$0.25. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

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 Silver Mountain Resources Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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 Silver Mountain Resources insiders own 22% of the company, worth about CA$7.2m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Silver Mountain Resources Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Silver Mountain Resources insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 4 warning signs for Silver Mountain Resources (2 make us uncomfortable) 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, but not derivative transactions.

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