Nasdaq
华尔街日报Vizsla Silver Independent Director Acquires 38% More Stock
Those following along with Vizsla Silver Corp. (TSE:VZLA) will no doubt be intrigued by the recent purchase of shares by Harry Pokrandt, Independent Director of the company, who spent a stonking CA$1.0m on stock at an average price of CA$7.09. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 38%.
Vizsla Silver Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chief Financial Officer, Mahesh Liyanage, for CA$1.4m worth of shares, at about CA$5.00 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$7.39. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 79% of Mahesh Liyanage's holding.
Happily, we note that in the last year insiders paid CA$1.3m for 195.05k shares. On the other hand they divested 1.08m shares, for CA$4.5m. In total, Vizsla Silver insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Vizsla Silver
I will like Vizsla Silver better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Vizsla Silver insiders own about CA$139m worth of shares (which is 5.5% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Vizsla Silver Tell Us?
The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Vizsla Silver insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Vizsla Silver has 4 warning signs (and 2 which are a bit concerning) we think you should know about.
Of course Vizsla Silver may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.
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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.