Dolly Varden Silver Drops To CA$0.70, Yet Insiders May Have Sold Too Early \

Dolly Varden Silver Corporation's (CVE:DV) value has fallen 13% in the last week, but insiders who sold CA$130k worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of CA$0.87 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Dolly Varden Silver

Dolly Varden Silver Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, James Sabala, sold CA$85k worth of shares at a price of CA$1.06 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (CA$0.70). So it may not tell us anything about how insiders feel about the current share price. James Sabala was the only individual insider to sell over the last year.

James Sabala sold a total of 150.00k shares over the year at an average price of CA$0.87. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insider Ownership Of Dolly Varden Silver

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. Dolly Varden Silver insiders own about CA$18m worth of shares. That equates to 10% 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 Do The Dolly Varden Silver Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Dolly Varden Silver shares in the last quarter. Still, the insider transactions at Dolly Varden Silver in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. 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. Every company has risks, and we've spotted 3 warning signs for Dolly Varden Silver (of which 2 are significant!) you should know about.

Of course Dolly Varden Silver may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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.