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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Kenmare Resources plc's (LON:KMR) instance, it's good 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.
Kenmare Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the MD & Executive Director, Michael Carvill, sold UK£85k worth of shares at a price of UK£4.25 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of UK£4.31. 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. It is worth noting that this sale was only 6.2% of Michael Carvill's holding. The only individual insider seller over the last year was Michael Carvill.
In the last twelve months insiders purchased 55.28k shares for UK£226k. But insiders sold 20.00k shares worth UK£85k. In the last twelve months there was more buying than selling by Kenmare Resources insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Kenmare Resources Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Kenmare Resources shares. In total, MD & Executive Director Michael Carvill sold UK£85k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Does Kenmare Resources Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.8% of Kenmare Resources shares, worth about UK£3.8m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Kenmare Resources Tell Us?
An insider sold stock recently, but they haven't been buying. But we take heart from prior transactions. Still, insiders don't own a great deal of the stock. So overall it's hard to argue insiders are bullish. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Kenmare Resources.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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. 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.
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