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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 before you buy or sell Bayhorse Silver Inc. (CVE:BHS), you may well want to know whether insiders have been buying or selling.
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, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Bayhorse Silver Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President Graeme O’Neill bought CA$317k worth of shares at a price of CA$0.10 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.075). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Graeme O’Neill was also the biggest seller, having sold CA$619k worth of shares.
In the last twelve months insiders purchased 6.2m shares for CA$618k. But insiders sold 6.1m shares worth CA$619k. All up, insiders sold more shares in Bayhorse Silver than they bought, over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Are Bayhorse Silver Insiders Buying Or Selling?
We saw insider selling worth CA$5.1k in the last three months. That's only a tiny bit more than the purchases, worth CA$4.5k. Ultimately the overall selling isn't enough to tell us much.
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. Our data indicates that Bayhorse Silver insiders own about CA$701k worth of shares (which is 9.4% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Bayhorse Silver Tell Us?
Insider buying and selling have balanced each other out in the last three months, so we can't deduct anything useful from these recent trades. We're a little cautious about the insider selling at Bayhorse Silver. And we're not picking up on high enough insider ownership to give us any comfort. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .
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 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.