Independent Non-Executive Director of Kalamazoo Resources Picks Up 32% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the Kalamazoo Resources Limited (ASX:KZR) Independent Non-Executive Director, Angus Middleton, recently bought AU$101k worth of stock, for AU$0.091 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 32%.

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Kalamazoo Resources Insider Transactions Over The Last Year

In fact, the recent purchase by Angus Middleton was the biggest purchase of Kalamazoo Resources shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.091). 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Angus Middleton was the only individual insider to buy shares in the last twelve months.

Angus Middleton purchased 1.50m shares over the year. The average price per share was AU$0.09. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Kalamazoo Resources

Kalamazoo Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Kalamazoo Resources insiders own about AU$2.2m worth of shares (which is 11% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Kalamazoo Resources Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Kalamazoo Resources insiders are expecting a bright future. 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. Be aware that Kalamazoo Resources is showing 4 warning signs in our investment analysis, and 2 of those don't sit too well with us...

Of course Kalamazoo Resources 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.