Have K92 Mining Insiders Been Selling Stock?

Anyone interested in K92 Mining Inc. (TSE:KNT) should probably be aware that the Independent Director, Mark Eaton, recently divested CA$656k worth of shares in the company, at an average price of CA$13.11 each. The eyebrow raising move amounted to a reduction of 23% in their holding.

Our free stock report includes 2 warning signs investors should be aware of before investing in K92 Mining. Read for free now.

K92 Mining Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CEO & Director, John Lewins, for CA$3.8m worth of shares, at about CA$9.88 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$13.44. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was only 10.0% of John Lewins's holding.

In the last year K92 Mining insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for K92 Mining

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of K92 Mining

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.0% of K92 Mining shares, worth about CA$65m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About K92 Mining Insiders?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since K92 Mining is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. Our analysis shows 2 warning signs for K92 Mining (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.

Of course K92 Mining 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.