Yahoo Finance Great news for Hercules Silver Corp. (CVE:BIG): Insiders acquired stock in large numbers last year
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Hercules Silver Corp. (CVE:BIG), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Hercules Silver
Hercules Silver Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Luis Da Silva for CA$125k worth of shares, at about CA$0.075 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.24. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Hercules Silver insiders may have bought shares in the last year, but they didn't sell any. They paid about CA$0.084 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Hercules Silver Have Bought Stock Recently
There was some insider buying at Hercules Silver over the last quarter. CEO & Director Christopher Paul bought CA$25k worth of shares in that time. 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 Of Hercules Silver
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. From our data, it seems that Hercules Silver insiders own 9.1% of the company, worth about CA$4.2m. However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.
So What Do The Hercules Silver Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Hercules Silver stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hercules Silver. For instance, we've identified 4 warning signs for Hercules Silver (2 are a bit unpleasant) you should be aware of.
But note: Hercules Silver 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.
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. 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.
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