Kingfisher Metals Insiders Up CA$224k On CA$901.4k Investment

Insiders who bought Kingfisher Metals Corp. (CVE:KFR) stock lover the last 12 months are probably not as affected by last week’s 17% loss. After taking the recent loss into consideration, the CA$901.4k worth of stock they bought is now worth CA$1.13m, indicating that their investment yielded a positive return.

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.

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The Last 12 Months Of Insider Transactions At Kingfisher Metals

Over the last year, we can see that the biggest insider purchase was by insider Alejandro Gubbins Cox for CA$300k worth of shares, at about CA$0.16 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.24. 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 Kingfisher Metals insiders were buying shares, but not selling. The average buy price was around CA$0.19. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

View our latest analysis for Kingfisher Metals

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Kingfisher Metals Insiders Bought Stock Recently

Over the last quarter, Kingfisher Metals insiders have spent a meaningful amount on shares. Overall, two insiders shelled out CA$232k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Kingfisher Metals

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 19% of Kingfisher Metals shares, worth about CA$3.1m. 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 Does This Data Suggest About Kingfisher Metals Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Kingfisher Metals insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kingfisher Metals. Case in point: We've spotted 5 warning signs for Kingfisher Metals you should be aware of, and 3 of these can't be ignored.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.