Despite Kazera Global's Pullback, Insiders Still Gained UK£37k

Insiders who purchased Kazera Global plc (LON:KZG) shares in the past 12 months are unlikely to be deeply impacted by the stock's 14% decline over the past week. After taking the recent loss into consideration, the UK£135.1k worth of stock they bought is now worth UK£172.0k, 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.

Check out our latest analysis for Kazera Global

Kazera Global Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider John Wardle bought UK£66k worth of shares at a price of UK£0.007 per share. We do like to see buying, but this purchase was made at well below the current price of UK£0.011. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Kazera Global insiders bought shares during the last year, they didn't sell. Their average price was about UK£0.0084. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Kazera Global is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Kazera Global Insiders Bought Stock Recently

Over the last quarter, Kazera Global insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought UK£135k worth of shares. This makes one think the business has some good points.

Does Kazera Global Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Kazera Global insiders own about UK£746k worth of shares (which is 7.2% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Kazera Global Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Kazera Global stock. 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. To help with this, we've discovered 6 warning signs (3 don't sit too well with us!) that you ought to be aware of before buying any shares in Kazera Global.

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.