KGL Resources Executive Chairman Acquires 78% More Stock
Potential KGL Resources Limited (ASX:KGL) shareholders may wish to note that the Executive Chairman, Jeffrey Gerard, recently bought AU$295k worth of stock, paying AU$0.20 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 78%.
The Last 12 Months Of Insider Transactions At KGL Resources
In the last twelve months, the biggest single sale by an insider was when the insider, Denis Wood, sold AU$6.5m worth of shares at a price of AU$0.13 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$0.17. 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. This single sale was 100% of Denis Wood's stake. The only individual insider seller over the last year was Denis Wood.
Happily, we note that in the last year insiders paid AU$395k for 1.97m shares. But they sold 50.12m shares for AU$6.5m. 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!
Check out our latest analysis for KGL Resources
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Does KGL Resources 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. Based on our data, KGL Resources insiders have about 1.1% of the stock, worth approximately AU$2.4m. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.
So What Do The KGL Resources Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. However, the longer term transactions are not so encouraging. The transactions over the last year don't give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. 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. While conducting our analysis, we found that KGL Resources has 2 warning signs and it would be unwise to ignore these.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.