Are Insiders Selling Silver Wolf Exploration Ltd. (CVE:SWLF) Stock?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Silver Wolf Exploration Ltd. (CVE:SWLF).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Silver Wolf Exploration

The Last 12 Months Of Insider Transactions At Silver Wolf Exploration

There wasn't any very large single transaction over the last year, but we can still observe some trading.

In the last twelve months insiders purchased 1.04m shares for CA$103k. On the other hand they divested 2.28m shares, for CA$137k. David Wolfin divested 2.28m shares over the last 12 months at an average price of CA$0.06. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Silver Wolf Exploration better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Have Silver Wolf Exploration Insiders Traded Recently?

Over the last three months, we've seen a bit of insider buying at Silver Wolf Exploration. Insiders purchased CA$12k worth of shares in that period. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 39% of Silver Wolf Exploration shares, worth about CA$2.2m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Silver Wolf Exploration Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. Our analysis of Silver Wolf Exploration insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 4 warning signs for Silver Wolf Exploration (2 are a bit concerning) you should be aware of.

Of course Silver Wolf Exploration 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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