It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Sierra Madre Gold and Silver Ltd.'s (CVE:SM) case, it's fantastic news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Sierra Madre Gold and Silver

The Last 12 Months Of Insider Transactions At Sierra Madre Gold and Silver

In the last twelve months, the biggest single purchase by an insider was when CEO, President & Director Alexander Langer bought CA$530k worth of shares at a price of CA$0.65 per share. That means that even when the share price was higher than CA$0.55 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Sierra Madre Gold and Silver insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Sierra Madre Gold and 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.

Does Sierra Madre Gold and Silver 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 8.6% of Sierra Madre Gold and Silver shares, worth about CA$7.2m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Sierra Madre Gold and Silver Insiders?

It doesn't really mean much that no insider has traded Sierra Madre Gold and Silver shares in the last quarter. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Sierra Madre Gold and Silver insiders bought more shares in the company. 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. To help with this, we've discovered 4 warning signs (2 are a bit concerning!) that you ought to be aware of before buying any shares in Sierra Madre Gold and Silver.