Dolly Varden Silver Falls To CA$0.67, But Insiders Sold At Lower Price

Dolly Varden Silver Corporation's (CVE:DV) value has fallen 11% in the last week, but insiders who sold CA$85k worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of CA$1.06 is still below the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Dolly Varden Silver

The Last 12 Months Of Insider Transactions At Dolly Varden Silver

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. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of CA$0.67. So it is hard to draw any strong conclusion from it. James Sabala was the only individual insider to sell shares in the last twelve months.

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 are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Dolly Varden Silver insiders own about CA$16m worth of shares. That equates to 9.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Dolly Varden Silver Insiders?

It doesn't really mean much that no insider has traded Dolly Varden Silver shares in the last quarter. We don't take much encouragement from the transactions by Dolly Varden Silver insiders. 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. Case in point: We've spotted 3 warning signs for Dolly Varden Silver you should be aware of, and 2 of them are potentially serious.

But note: Dolly Varden Silver may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.