Insiders Give Up AU$46k As Koonenberry Gold Stock Drops To AU$0.012

The recent 14% drop in Koonenberry Gold Limited's (ASX:KNB) stock could come as a blow to insiders who purchased AU$323.4k worth of stock at an average buy price of AU$0.014 over the past 12 months. 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$277.2k, which is not great.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Koonenberry Gold

The Last 12 Months Of Insider Transactions At Koonenberry Gold

The insider Peter Proksa made the biggest insider purchase in the last 12 months. That single transaction was for AU$177k worth of shares at a price of AU$0.014 each. That means that an insider was happy to buy shares at above the current price of AU$0.012. 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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Koonenberry Gold 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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 Of Koonenberry Gold

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Koonenberry Gold insiders own about AU$733k worth of shares. That equates to 21% of the company. 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 Koonenberry Gold Insider Transactions Indicate?

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. Insiders do have a stake in Koonenberry Gold and their transactions don't cause us concern. 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. Case in point: We've spotted 6 warning signs for Koonenberry Gold you should be aware of.

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.