Silver Mountain Resources Insiders Added US$2.35m Of Stock To Their Holdings

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Silver Mountain Resources Inc. (CVE:AGMR), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Silver Mountain Resources

The Last 12 Months Of Insider Transactions At Silver Mountain Resources

In the last twelve months, the biggest single purchase by an insider was when Chairman Jose Vizquerra Benavides bought CA$680k worth of shares at a price of CA$0.093 per share. That means that even when the share price was higher than CA$0.08 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Jose Vizquerra Benavides was also the biggest seller.

Happily, we note that in the last year insiders paid CA$2.4m for 30.19m shares. On the other hand they divested 3.29m shares, for CA$306k. Overall, Silver Mountain Resources insiders were net buyers during the last year. They paid about CA$0.078 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. Insiders own 17% of Silver Mountain Resources shares, worth about CA$5.9m. 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 Silver Mountain Resources Tell Us?

The fact that there have been no Silver Mountain Resources insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Silver Mountain Resources and their transactions don't cause us concern. 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. Be aware that Silver Mountain Resources is showing 5 warning signs in our investment analysis, and 4 of those can't be ignored...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.