Yahoo Finance Insiders who bought in the last 12 months lose an additional AU$21k as Mighty Kingdom Limited (ASX:MKL) drops to AU$21m
Insiders who bought AU$100k worth of Mighty Kingdom Limited's (ASX:MKL) stock at an average buy price of AU$0.18 over the last year may be disappointed by the recent 18% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth AU$78k, which is not what they expected.
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.
View our latest analysis for Mighty Kingdom
The Last 12 Months Of Insider Transactions At Mighty Kingdom
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chair Michelle Guthrie bought AU$80k worth of shares at a price of AU$0.18 per share. That means that an insider was happy to buy shares at above the current price of AU$0.14. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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 Mighty Kingdom insiders bought shares during the last year, they didn't sell. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Mighty Kingdom Insiders Bought Stock Recently
It's good to see that Mighty Kingdom insiders have made notable investments in the company's shares. We can see that Independent Non-Executive Chair Michelle Guthrie paid AU$80k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership of Mighty Kingdom
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Mighty Kingdom insiders own about AU$8.3m worth of shares. That equates to 39% of the company. 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 Do The Mighty Kingdom Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Mighty Kingdom insiders are well aligned, and that they may think the share price is too low. 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. For example - Mighty Kingdom has 3 warning signs we think you should be aware of.
But note: Mighty Kingdom may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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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.
