Bullish Koonenberry Gold Insiders Loaded Up On AU$7.71m Of Stock
Quite a few insiders have dramatically grown their holdings in Koonenberry Gold Limited (ASX:KNB) over the past 12 months. An insider’s optimism about the company’s prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
In the last twelve months, the biggest single sale by an insider was when the insider, Emanuel Datt, sold AU$3.4m worth of shares at a price of AU$0.04 per share. That means that even when the share price was below the current price of AU$0.041, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. We note that the biggest single sale was 71% of Emanuel Datt’s holding. The only individual insider seller over the last year was Emanuel Datt. Notably Emanuel Datt was also the biggest buyer, having purchased AU$7.7m worth of shares.
Happily, we note that in the last year insiders paid AU$7.7m for 161.41m shares. On the other hand they divested 86.31m shares, for AU$3.4m. Overall, Koonenberry Gold insiders were net buyers during the last year. They paid about AU$0.048 on average. I’d consider this a positive as it suggests insiders see value at around the current price. 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!
Check out our latest analysis for Koonenberry Gold
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Koonenberry Gold insiders own 22% of the company, worth about AU$9.1m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
There haven’t been any insider transactions in the last three months — that doesn’t mean much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Koonenberry Gold and their transactions don’t cause us concern. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Koonenberry Gold. To help with this, we’ve discovered 4 warning signs (3 are a bit concerning!) that you ought to be aware of before buying any shares in Koonenberry Gold.
Of course Koonenberry Gold 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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