Non-Independent Non-Executive Director of Gulf Keystone Petroleum Julien Olivier Balkany Buys More Stock

Even if it's not a huge purchase, we think it was good to see that Julien Olivier Balkany, the Non-Independent Non-Executive Director of Gulf Keystone Petroleum Limited (LON:GKP) recently shelled out UK£57k to buy stock, at UK£1.14 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for Gulf Keystone Petroleum

The Last 12 Months Of Insider Transactions At Gulf Keystone Petroleum

In the last twelve months, the biggest single purchase by an insider was when insider Ian Weatherdon bought UK£849k worth of shares at a price of UK£1.35 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£1.18). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for 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. We note that Ian Weatherdon was both the biggest buyer and the biggest seller.

Happily, we note that in the last year insiders paid UK£906k for 678.94k shares. But insiders sold 628.94k shares worth UK£849k. In the last twelve months there was more buying than selling by Gulf Keystone Petroleum insiders. 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!

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).

Does Gulf Keystone Petroleum Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Gulf Keystone Petroleum insiders own about UK£31m worth of shares. That equates to 12% of the company. 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 Gulf Keystone Petroleum Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Gulf Keystone Petroleum shares, given these transactions (along with notable insider ownership of the company). Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Gulf Keystone Petroleum.

Of course Gulf Keystone Petroleum 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.