Yahoo Finance Have Insiders Been Buying Discovery Silver Corp. (CVE:DSV) Shares This Year?
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 Discovery Silver Corp. (CVE:DSV), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
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 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'.
Check out our latest analysis for Discovery Silver
Discovery Silver Insider Transactions Over The Last Year
The insider Eric Sprott made the biggest insider purchase in the last 12 months. That single transaction was for CA$15m worth of shares at a price of CA$1.35 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$2.50. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid CA$27m for 17.70m shares. But insiders sold 2.32m shares worth CA$5.1m. In total, Discovery Silver insiders bought more than they sold over the last year. They paid about CA$1.51 on average. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!
Discovery Silver is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Discovery Silver Have Sold Stock Recently
We've seen more insider selling than insider buying at Discovery Silver recently. We note insiders cashed in CA$2.0m worth of shares. Meanwhile insider Jennifer Wagner bought CA$107k worth. Generally this level of net selling might be considered a bit bearish.
Insider Ownership of Discovery Silver
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Discovery Silver insiders own about CA$232m worth of shares (which is 29% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Discovery Silver Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Discovery Silver, in the last three months. On the other hand, the insider transactions over the last year are encouraging. And insider ownership remains quite considerable. So the recent selling doesn't worry us. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Discovery Silver is showing 4 warning signs in our investment analysis, and 1 of those is potentially serious...
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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. 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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