Salazar Resources Insiders Up CA$931k On CA$1.28m Investment

Insiders who bought Salazar Resources Limited (CVE:SRL) in the last 12 months may probably not pay attention to the stock's recent 11% drop. After taking the recent loss into consideration, the CA$1.28m worth of stock they bought is now worth CA$2.22m, indicating that their investment yielded a positive return.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Salazar Resources

The Last 12 Months Of Insider Transactions At Salazar Resources

In fact, the recent purchase by President Fredy Salazar was not their only acquisition of Salazar Resources shares this year. They previously made an even bigger purchase of CA$900k worth of shares at a price of CA$0.045 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.08. 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.

Happily, we note that in the last year insiders paid CA$1.3m for 27.70m shares. But they sold 20.00m shares for CA$900k. Overall, Salazar Resources insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Salazar Resources 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.

Salazar Resources Insiders Bought Stock Recently

It's good to see that Salazar Resources insiders have made notable investments in the company's shares. Overall, two insiders shelled out CA$385k for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership Of Salazar Resources

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Salazar Resources insiders own about CA$3.3m worth of shares. That equates to 18% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Salazar Resources Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Salazar Resources insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 5 warning signs for Salazar Resources (of which 3 are a bit unpleasant!) you should know about.

Of course Salazar Resources 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.