Insider Returns Down To CA$176k As Kalo Gold's Stock Dips 14%

Insiders who bought Kalo Gold Corp. (CVE:KALO) in the last 12 months may probably not pay attention to the stock's recent 14% drop. After taking the recent loss into consideration, the CA$184.0k worth of stock they bought is now worth CA$360.0k, indicating that their investment yielded a positive return.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Kalo Gold Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Executive VP of Capital Markets Kevin Ma bought CA$91k worth of shares at a price of CA$0.03 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.06. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Kalo Gold insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Kalo Gold

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

Have Kalo Gold Insiders Traded Recently?

There was some insider buying at Kalo Gold over the last quarter. Independent Director Cam Grundstrom bought CA$10k worth of shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Kalo Gold Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Kalo Gold insiders own 38% of the company, worth about CA$4.8m. 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 Kalo Gold Insiders?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Kalo 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 5 warning signs for Kalo Gold you should be aware of.

But note: Kalo Gold 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 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.