How Much Are Kraken Robotics Inc. (CVE:PNG) Insiders Taking Off The Table?

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Kraken Robotics Inc. (CVE:PNG).

What Is Insider Buying?

It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. 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’.

Check out our latest analysis for Kraken Robotics

The Last 12 Months Of Insider Transactions At Kraken Robotics

In the last twelve months, the biggest single sale by an insider was when the President, Karl Kenny, sold CA$450k worth of shares at a price of CA$0.30 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of CA$0.71. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. It is worth noting that this sale was only 5.4% of Karl Kenny’s holding. Karl Kenny was the only individual insider to sell over the last year.

You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

TSXV:PNG Recent Insider Trading, July 3rd 2019
TSXV:PNG Recent Insider Trading, July 3rd 2019

Insiders at Kraken Robotics Have Bought Stock Recently

Over the last three months, we’ve seen a bit of insider buying at Kraken Robotics. CFO & Corporate Secretary Greg Reid bought CA$23k worth of shares in that time. It’s great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership of Kraken Robotics

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. Kraken Robotics insiders own about CA$22m worth of shares. That equates to 21% 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 Kraken Robotics Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. We don’t take much encouragement from the transactions by Kraken Robotics insiders. But we do like the fact that insiders own a fair chunk of the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: Kraken Robotics 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 aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.