Dolly Varden Silver Insiders Land Bargain With Gains Of CA$982k

Insiders who bought Dolly Varden Silver Corporation (CVE:DV) in the last 12 months may probably not pay attention to the stock's recent 13% drop. After taking the recent loss into consideration, the CA$2.00m worth of stock they bought is now worth CA$2.98m, indicating that their investment yielded a positive return.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Dolly Varden Silver

Dolly Varden Silver Insider Transactions Over The Last Year

The insider Eric Sprott made the biggest insider purchase in the last 12 months. That single transaction was for CA$2.0m worth of shares at a price of CA$0.70 each. We do like to see buying, but this purchase was made at well below the current price of CA$1.04. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share 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!

Dolly Varden Silver is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Dolly Varden Silver Insiders Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Dolly Varden Silver. In total, insider Eric Sprott bought CA$2.0m worth of shares in that time. On the other hand, Independent Director James Sabala netted CA$34k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership Of Dolly Varden Silver

Many investors like to check how much of a company is owned by insiders. 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$30m worth of shares. That equates to 10% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Dolly Varden Silver Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Dolly Varden Silver we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with Dolly Varden Silver (including 2 which are potentially serious).

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.