Steven Formica Bought 33% More Shares In Kaiser Reef

Investors who take an interest in Kaiser Reef Limited (ASX:KAU) should definitely note that the Non-Executive Chairman, Steven Formica, recently paid AU$0.14 per share to buy AU$350k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 33%.

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The Last 12 Months Of Insider Transactions At Kaiser Reef

Notably, that recent purchase by Steven Formica is the biggest insider purchase of Kaiser Reef shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of AU$0.17. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Kaiser Reef 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!

See our latest analysis for Kaiser Reef

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Does Kaiser Reef Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Kaiser Reef insiders own about AU$7.1m worth of shares (which is 13% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Kaiser Reef Insiders?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Kaiser Reef insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Kaiser Reef has 2 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

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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.