This Insider Has Just Sold Shares In KGL Resources

We wouldn't blame KGL Resources Limited (ASX:KGL) shareholders if they were a little worried about the fact that Denis Wood, a company insider, recently netted about AU$6.5m selling shares at an average price of AU$0.13. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

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KGL Resources Insider Transactions Over The Last Year

In fact, the recent sale by Denis Wood was the biggest sale of KGL Resources shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of AU$0.13. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Over the last year, we can see that insiders have bought 374.76k shares worth AU$36k. 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. By clicking on the graph below, you can see the precise details of each insider transaction!

See 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).

Insider Ownership Of KGL Resources

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that KGL Resources insiders own about AU$8.5m worth of shares (which is 9.9% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About KGL Resources Insiders?

An insider hasn't bought KGL Resources stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 5 warning signs for KGL Resources (2 are a bit unpleasant!) and we strongly recommend you look at these before investing.

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.