Sierra Madre Gold and Silver Up 11%, Insiders Still In The Red By US$488k

Insiders who bought US$1.57m worth of Sierra Madre Gold and Silver Ltd. (CVE:SM) stock in the last year recovered part of their losses as the stock rose by 11% last week. However, total losses seen by insiders are still US$488k since the time of purchase.

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.

See our latest analysis for Sierra Madre Gold and Silver

The Last 12 Months Of Insider Transactions At Sierra Madre Gold and Silver

The CEO, President & Director Alexander Langer made the biggest insider purchase in the last 12 months. That single transaction was for CA$530k worth of shares at a price of CA$0.65 each. That means that even when the share price was higher than CA$0.42 (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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Sierra Madre Gold and Silver insiders may have bought shares in the last year, but they didn't sell any. 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!

Sierra Madre Gold and Silver is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 8.5% of Sierra Madre Gold and Silver shares, worth about CA$5.3m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Sierra Madre Gold and Silver Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Sierra Madre Gold and Silver stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sierra Madre Gold and Silver. Our analysis shows 5 warning signs for Sierra Madre Gold and Silver (2 are concerning!) and we strongly recommend you look at them before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.