Are Insiders Buying KORE Mining Ltd. (CVE:KORE) Stock?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in KORE Mining Ltd. (CVE:KORE).

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for KORE Mining

The Last 12 Months Of Insider Transactions At KORE Mining

In the last twelve months, the biggest single purchase by an insider was when insider Eric Sprott bought CA$3.0m worth of shares at a price of CA$0.30 per share. That means that even when the share price was higher than CA$0.23 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid CA$3.1m for 10.46m shares. On the other hand they divested 9500 shares, for CA$1.7k. In total, KORE Mining insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

KORE Mining is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. KORE Mining insiders own about CA$4.4m worth of shares. That equates to 22% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At KORE Mining Tell Us?

It doesn't really mean much that no insider has traded KORE Mining shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in KORE Mining and their transactions don't cause us concern. Along with insider transactions, I recommend checking if KORE Mining is growing revenue. This free chart of historic revenue and earnings should make that easy.

But note: KORE Mining 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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