Insiders Of Kazera Global Reap Rewards After Their Investment Jumps Another UK£104k

Kazera Global plc (LON:KZG) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 24%, resulting in a UK£3.5m rise in the company's market capitalisation, translating to a gain of 14% on their initial investment. As a result, the stock they originally bought for UK£735.1k is now worth UK£839.5k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Kazera Global

Over the last year, we can see that the biggest insider purchase was by Non-Executive Chairman John Wardle for UK£600k worth of shares, at about UK£0.02 per share. That means that even when the share price was higher than UK£0.018 (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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Kazera Global insiders may have bought shares in the last year, but they didn't sell any. They paid about UK£0.016 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Kazera Global

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Kazera Global Insiders Bought Stock Recently

It's good to see that Kazera Global insiders have made notable investments in the company's shares. We can see that Non-Executive Chairman John Wardle paid UK£600k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 13% of Kazera Global shares, worth about UK£2.4m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Kazera Global Tell Us?

It's certainly positive to see the recent insider purchase. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Kazera Global insiders are reasonably well aligned, and optimistic for the future. 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. Be aware that Kazera Global is showing 5 warning signs in our investment analysis, and 3 of those make us uncomfortable...

Of course Kazera Global may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.