Insiders Give Up AU$123k As Kingfisher Mining Stock Drops To AU$0.15

Insiders who bought AU$191.0k worth of Kingfisher Mining Limited's (ASX:KFM) stock at an average buy price of AU$0.42 over the last year may be disappointed by the recent 12% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$68.3k, which is not great.

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.

See our latest analysis for Kingfisher Mining

The Last 12 Months Of Insider Transactions At Kingfisher Mining

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman Warren Hallam bought AU$100k worth of shares at a price of AU$0.42 per share. That means that an insider was happy to buy shares at above the current price of AU$0.15. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for 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.

In the last twelve months Kingfisher Mining insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Kingfisher Mining is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Kingfisher Mining insiders own 33% of the company, worth about AU$2.7m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Kingfisher Mining Tell Us?

It doesn't really mean much that no insider has traded Kingfisher Mining shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Kingfisher Mining and their transactions don't cause us concern. 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. Every company has risks, and we've spotted 5 warning signs for Kingfisher Mining (of which 4 are potentially serious!) you should know about.

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 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.