Trade Alert: The Executive Chair & CEO Of AKITA Drilling Ltd. (TSE:AKT.A), Linda Southern-Heathcott, Has Just Spent CA$2.4m Buying 4,935% More Shares

Those following along with AKITA Drilling Ltd. (TSE:AKT.A) will no doubt be intrigued by the recent purchase of shares by Linda Southern-Heathcott, Executive Chair & CEO of the company, who spent a stonking CA$2.4m on stock at an average price of CA$1.50. That purchase boosted their holding by 4,935%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

View our latest analysis for AKITA Drilling

The Last 12 Months Of Insider Transactions At AKITA Drilling

In fact, the recent purchase by Linda Southern-Heathcott was the biggest purchase of AKITA Drilling shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (CA$1.78), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months AKITA Drilling insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does AKITA Drilling Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests AKITA Drilling insiders own 1.5% of the company, worth about CA$1.0m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

What Might The Insider Transactions At AKITA Drilling Tell Us?

It's certainly positive 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that AKITA Drilling insiders are reasonably well aligned, and optimistic for the future. 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. You'd be interested to know, that we found 3 warning signs for AKITA Drilling and we suggest you have a look.

But note: AKITA Drilling 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. 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.