May 21, 2024

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Senior Vice President of Technical Services Eric Chapman Sold A Bunch Of Shares In Fortuna Silver Mines

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Anyone interested in Fortuna Silver Mines Inc. (TSE:FVI) should probably be aware that the Senior Vice President of Technical Services, Eric Chapman, recently divested CA$320k worth of shares in the company, at an average price of CA$6.41 each. That sale was 30% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Fortuna Silver Mines

Fortuna Silver Mines Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Jorge Ganoza Durant, for CA$2.4m worth of shares, at about CA$5.42 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of CA$6.54. 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. It is worth noting that this sale was only 21% of Jorge Ganoza Durant’s holding. Notably Jorge Ganoza Durant was also the biggest buyer, having purchased CA$276k worth of shares.

Happily, we note that in the last year insiders paid CA$276k for 70.00k shares. On the other hand they divested 760.00k shares, for CA$3.8m. In total, Fortuna Silver Mines insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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TSX:FVI Insider Trading Volume April 12th 2024

I will like Fortuna Silver Mines better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Fortuna Silver Mines Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.1% of Fortuna Silver Mines shares, worth about CA$21m. 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 Fortuna Silver Mines Insiders?

An insider hasn’t bought Fortuna Silver Mines stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’re in no rush to buy! 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 – Fortuna Silver Mines has 2 warning signs we think you should be aware of.

Of course Fortuna Silver Mines 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.

Valuation is complex, but we’re helping make it simple.

Find out whether Fortuna Silver Mines is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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