Even if it's not a huge purchase, we think it was good to see that Meng Tang, the Independent Director of Minco Silver Corporation (TSE:MSV) recently shelled out CA$92k to buy stock, at CA$0.23 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
Minco Silver Insider Transactions Over The Last Year
Notably, that recent purchase by Meng Tang is the biggest insider purchase of Minco Silver shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (CA$0.52), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Minco Silver
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Minco Silver Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 19% of Minco Silver shares, worth about CA$5.9m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Minco Silver Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Minco Silver we think they are probably pretty confident of a bright 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. Our analysis shows 4 warning signs for Minco Silver (1 is significant!) and we strongly recommend you look at these before investing.
Of course Minco 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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