Dolly Varden Silver Corporation (CVE:DV) Insiders Are Down 14% on Their $2.5M Buy Despite Recent Gains
Insiders who purchased C$2.5 million of Dolly Varden Money Society (CVE:DV) last year saw some of their losses recouped, with the stock gaining 68% in the past week. However, the purchase turns out to be a costly gamble as insiders have yet to anticipate their losses which currently stand at CA$362,000 from the time of purchase.
While we don’t think shareholders should simply follow insider trades, we think it makes perfect sense to keep an eye on what insiders are doing.
Check out our latest analysis for Dolly Varden Silver
The last 12 months of insider trading at Dolly Varden Silver
In the past twelve months, the largest single insider purchase was when insider Eric Sprott bought C$2.5 million worth of stock at C$0.72 per share. This means that an insider was happy to buy shares above the current price of C$0.62. It is very possible that they regret the purchase, but it is more likely that they are optimistic about the company. In our view, the price an insider pays for a stock is very important. It is encouraging to see an insider paid above the current stock price, as it suggests that they have perceived value even at higher levels. Eric Sprott was the only individual insider to buy in the past year.
You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you want to know exactly who sold, how much and when, just click on the chart below!
Dolly Varden Silver isn’t the only stock insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.
Many investors like to check how much a company is owned by insiders. High insider participation often makes company management more concerned with the interests of shareholders. Insiders own 11% of the shares of Dolly Varden Silver, worth approximately C$16 million. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.
So what do the Dolly Varden Silver insider trades indicate?
It doesn’t mean much that no insider traded shares of Dolly Varden Silver in the last quarter. However, our analysis of transactions over the past year is encouraging. Insiders have a stake in Dolly Varden Silver and their transactions are of no concern to us. While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. During our analysis, we found that Dolly Varden Silver had 3 warning signs and it would be unwise to ignore them.
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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