Independent Chairman of the Board Of Dolly Varden Silver Sold 27% Of Their Shares

Investors may wish to note that the Independent Chairman of the Board of Dolly Varden Silver Corporation, Darren Devine, recently netted CA$92k from selling stock, receiving an average price of CA$1.22. It might not be a huge sale, but it did reduce their holding size 27%, hardly encouraging.

See our latest analysis for Dolly Varden Silver

Dolly Varden Silver Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Eric Sprott for CA$2.0m worth of shares, at about CA$1.00 per share. We do like to see buying, but this purchase was made at well below the current price of CA$1.16. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Eric Sprott bought 4.87m shares over the last 12 months at an average price of CA$0.82. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Dolly Varden Silver Boast High 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. Insiders own 10.0% of Dolly Varden Silver shares, worth about CA$36m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Dolly Varden Silver Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Dolly Varden Silver we think they are probably pretty confident of a bright future. 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. Our analysis shows 2 warning signs for Dolly Varden Silver (1 is a bit concerning!) and we strongly recommend you look at these before investing.

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.