U.S. Markets open in 1 hr 25 mins

How Much Are Fortuna Silver Mines Inc. (TSE:FVI) Insiders Spending On Buying Shares?

Simply Wall St

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Fortuna Silver Mines Inc. (TSE:FVI), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.

View our latest analysis for Fortuna Silver Mines

The Last 12 Months Of Insider Transactions At Fortuna Silver Mines

Over the last year, we can see that the biggest insider purchase was by President Jorge A. Ganoza Durant for CA$589k worth of shares, at about CA$3.55 per share. That implies that an insider found the current price of CA$4.36 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Fortuna Silver Mines insiders decided to buy shares at close to current prices.

While Fortuna Silver Mines insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

TSX:FVI Recent Insider Trading, December 2nd 2019

Fortuna Silver Mines 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

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Fortuna Silver Mines insiders own 0.9% of the company, worth about CA$6.3m. We consider this fairly low insider ownership.

So What Does This Data Suggest About Fortuna Silver Mines Insiders?

It doesn't really mean much that no insider has traded Fortuna Silver Mines shares in the last quarter. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Fortuna Silver Mines insiders bought more shares in the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Fortuna Silver Mines.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.