Investors who take an interest in Denarius Metals Corp. (CVE:DSLV) should definitely note that the Executive Chairman & CEO, Serafino Iacono, recently paid CA$0.76 per share to buy CA$146k worth of the stock. Although the purchase only increased their holding by 1.6%, it is still a solid purchase in our view.
Check out our latest analysis for Denarius Metals
The Last 12 Months Of Insider Transactions At Denarius Metals
Notably, that recent purchase by Executive Chairman & CEO Serafino Iacono was not the only time they bought Denarius Metals shares this year. Earlier in the year, they paid CA$0.40 per share in a CA$2.0m purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.70. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.
While Denarius Metals insiders bought shares during the last year, they didn’t sell. Their average price was about CA$0.45. It is certainly positive to see 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 a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Denarius Metals Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 24% of Denarius Metals shares, worth about CA$10m. 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 Does This Data Suggest About Denarius Metals Insiders?
It’s certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Denarius Metals 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 Denarius Metals. To help with this, we’ve discovered 4 warning signs (2 make us uncomfortable!) that you ought to be aware of before buying any shares in Denarius Metals.
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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.
