Insider Stock Buying Reaches AU$7.71m On Koonenberry Gold

Multiple insiders secured a larger position in Koonenberry Gold Limited (ASX:KNB) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Koonenberry Gold

In the last twelve months, the biggest single sale by an insider was when the insider, Emanuel Datt, sold AU$3.4m worth of shares at a price of AU$0.04 per share. That means that even when the share price was below the current price of AU$0.044, an insider wanted to cash in some shares. 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. 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. This single sale was 71% of Emanuel Datt's stake. Emanuel Datt was the only individual insider to sell shares in the last twelve months. Notably Emanuel Datt was also the biggest buyer, having purchased AU$7.7m worth of shares.

In the last twelve months insiders purchased 161.41m shares for AU$7.7m. On the other hand they divested 86.31m shares, for AU$3.4m. In total, Koonenberry Gold insiders bought more than they sold over the last year. The average buy price was around AU$0.048. These transactions suggest that insiders have considered the current price attractive. 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!

See our latest analysis for Koonenberry Gold

Koonenberry Gold is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by 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 Koonenberry Gold insiders own 22% of the company, worth about AU$9.9m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Koonenberry Gold Tell Us?

It doesn't really mean much that no insider has traded Koonenberry Gold shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Koonenberry Gold insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Koonenberry Gold. To that end, you should learn about the 5 warning signs we've spotted with Koonenberry Gold (including 3 which are concerning).

Of course Koonenberry Gold may not be the best stock to buy. So you may wish to see this free collection of high quality 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.