Insiders who bought US$100k worth of Gatos Silver, Inc. (NYSE:GATO) stock in the last year have seen some of their losses recouped as the stock gained 8.1% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at US$19k since the time of purchase.
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.
The Last 12 Months Of Insider Transactions At Gatos Silver
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Stephen Orr bought US$100k worth of shares at a price of US$12.53 per share. That means that an insider was happy to buy shares at above the current price of US$10.13. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Stephen Orr.
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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Gatos Silver Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Gatos Silver insiders own 0.8% of the company, worth about US$5.5m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Gatos Silver Tell Us?
The fact that there have been no Gatos Silver insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Gatos Silver insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gatos Silver. At Simply Wall St, we've found that Gatos Silver has 4 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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.