Insiders who bought Honey Badger Silver Inc. (CVE:TUF) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$23m as a result of the stock's 20% gain over the same period. In other words, the original CA$7.98m purchase is now worth CA$15.4m.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Honey Badger Silver
In the last twelve months, the biggest single purchase by an insider was when insider Eric Sprott bought CA$6.1m worth of shares at a price of CA$0.72 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.83. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 18.51m shares worth CA$8.0m. On the other hand they divested 384.62k shares, for CA$94k. Overall, Honey Badger Silver insiders were net buyers during the last year. Their average price was about CA$0.43. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!
See our latest analysis for Honey Badger Silver
Honey Badger Silver is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Honey Badger Silver Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Honey Badger Silver. Executive Chairman & CEO Chad Williams spent CA$141k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Honey Badger Silver insiders own 33% of the company, worth about CA$44m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Honey Badger Silver Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Honey Badger Silver insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Honey Badger Silver. When we did our research, we found 4 warning signs for Honey Badger Silver (2 don't sit too well with us!) that we believe deserve your full attention.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.