Dolly Varden Silver Insider Buyers Pleased With CA$527k Return On Investment

Insiders who purchased Dolly Varden Silver Corporation (CVE:DV) shares in the past 12 months are unlikely to be deeply impacted by the stock's 11% decline over the past week. After accounting for the recent loss, the CA$4.00m worth of shares they purchased is now worth CA$4.53m, suggesting a good return on their investment.

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.

View 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 purchase by an insider was when insider Eric Sprott bought CA$2.0m worth of shares at a price of CA$1.00 per share. That means that even when the share price was higher than CA$0.93 (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. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Eric Sprott.

Eric Sprott bought a total of 4.87m shares over the year at an average price of CA$0.82. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 9.9% of Dolly Varden Silver shares, worth about CA$30m. 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 Dolly Varden Silver Insiders?

It doesn't really mean much that no insider has traded Dolly Varden Silver shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Dolly Varden Silver insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dolly Varden Silver. To that end, you should learn about the 2 warning signs we've spotted with Dolly Varden Silver (including 1 which doesn't sit too well with us).

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 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.