Trade Alert: Independent Director Of Silver Storm Mining Thomas English Has Sold Stock

Anyone interested in Silver Storm Mining Ltd. (CVE:SVRS) should probably be aware that the Independent Director, Thomas English, recently divested CA$197k worth of shares in the company, at an average price of CA$0.15 each. That sale was 49% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Silver Storm Mining

The Last 12 Months Of Insider Transactions At Silver Storm Mining

In the last twelve months, the biggest single purchase by an insider was when insider Eric Sprott bought CA$3.0m worth of shares at a price of CA$0.11 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.14), we still think insider buying is a positive. 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 a total of 32.83m shares over the year at an average price of CA$0.11. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insider Ownership

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. Silver Storm Mining insiders own about CA$13m 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.

So What Do The Silver Storm Mining Insider Transactions Indicate?

It is good to see the recent insider purchase. 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. Given that insiders also own a fair bit of Silver Storm Mining we think they are probably pretty confident of a bright future. While it's good to be aware of 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. Be aware that Silver Storm Mining is showing 5 warning signs in our investment analysis, and 2 of those can't be ignored...

But note: Silver Storm Mining 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.