Have King Island Scheelite Limited (ASX:KIS) Insiders Been Selling Their Stock?

We'd be surprised if King Island Scheelite Limited (ASX:KIS) shareholders haven't noticed that an insider, Catherine Morritt, recently sold AU$321k worth of stock at AU$0.26 per share. On the bright side, that sale was only 7.9% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for King Island Scheelite

King Island Scheelite Insider Transactions Over The Last Year

Notably, that recent sale by Catherine Morritt is the biggest insider sale of King Island Scheelite shares that we've seen in the last year. That means that an insider was selling shares at below the current price (AU$0.26). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 7.9%of Catherine Morritt's holding.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like King Island Scheelite better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does King Island Scheelite Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that King Island Scheelite insiders own 29% of the company, worth about AU$23m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The King Island Scheelite Insider Transactions Indicate?

An insider sold King Island Scheelite shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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 8 warning signs for King Island Scheelite (of which 4 are a bit unpleasant!) you should know about.

But note: King Island Scheelite 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. 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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