Solaris Resources Inc. (CVE:SLS) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, Richard Warke, recently bought a whopping CA$4.4m worth of stock, at a price of CA$4.70. While that only increased their holding size by 5.0%, it is still a big swing by our standards.
View our latest analysis for Solaris Resources
Solaris Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Richard Warke is the biggest insider purchase of Solaris Resources shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$4.65). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Solaris Resources insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Solaris Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Solaris Resources
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. It appears that Solaris Resources insiders own 27% of the company, worth about CA$113m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Solaris Resources Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Solaris Resources. Looks promising! 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. Be aware that Solaris Resources is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...
Of course Solaris Resources 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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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.