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华尔街日报Have Andean Silver Insiders Been Selling Stock?
We'd be surprised if Andean Silver Limited (ASX:ASL) shareholders haven't noticed that the Non-Executive Director, Raymond Shorrocks, recently sold AU$572k worth of stock at AU$2.12 per share. On the bright side, that sale was only 9.8% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At Andean Silver
The insider, Stephen Parsons, made the biggest insider sale in the last 12 months. That single transaction was for AU$2.9m worth of shares at a price of AU$1.86 each. That means that an insider was selling shares at slightly below the current price (AU$2.45). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 9.7% of Stephen Parsons's holding. Notably Stephen Parsons was also the biggest buyer, having purchased AU$100k worth of shares.
All up, insiders sold more shares in Andean Silver 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!
Check out our latest analysis for Andean Silver
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does Andean Silver Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Andean Silver insiders own about AU$72m worth of shares. That equates to 15% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Andean Silver Insider Transactions Indicate?
Insiders sold Andean Silver shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. For instance, we've identified 4 warning signs for Andean Silver (1 is potentially serious) you should be aware of.
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 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.