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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in SilverCrest Metals Inc. (CVE:SIL).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. 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 equally, we would consider it foolish to ignore insider transactions altogether. 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.'
SilverCrest Metals Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Executive Vice President of Business Development, Nicholas Campbell, for CA$353k worth of shares, at about CA$4.70 per share. That means that even when the share price was slightly below the current price of CA$4.75, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 15.5% of Nicholas Campbell's stake.
In the last twelve months insiders purchased 207k shares for CA$632k. But insiders sold 78073 shares worth CA$362k. Overall, SilverCrest Metals insiders were net buyers last year. 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!
SilverCrest Metals 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.
SilverCrest Metals Insiders Are Selling The Stock
There was substantially more insider selling, than buying, of SilverCrest Metals shares over the last three months. In that time, Executive Vice President of Business Development Nicholas Campbell dumped CA$353k worth of shares. On the other hand we note President Christopher Ritchie bought CA$24k worth of shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that SilverCrest Metals insiders own 4.7% of the company, worth about CA$19m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About SilverCrest Metals Insiders?
Unfortunately, there has been more insider selling of SilverCrest Metals stock, than buying, in the last three months. But we take heart from prior transactions. And insiders do own shares. So the recent selling doesn't worry us too much. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for SilverCrest Metals.
But note: SilverCrest Metals 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.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.