This Insider Has Just Sold Shares In Kumba Iron Ore Limited (JSE:KIO)

We'd be surprised if Kumba Iron Ore Limited (JSE:KIO) shareholders haven't noticed that the CEO & Executive Director, Themba Mkhwanazi, recently sold R3.9m worth of stock at R648 per share. That sale was 15% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Kumba Iron Ore

The Last 12 Months Of Insider Transactions At Kumba Iron Ore

In fact, the recent sale by Themba Mkhwanazi was the biggest sale of Kumba Iron Ore shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of R627. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Kumba Iron Ore insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Kumba Iron Ore better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Kumba Iron Ore

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. From looking at our data, insiders own R69m worth of Kumba Iron Ore stock, about 0.03% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Kumba Iron Ore Tell Us?

Insiders sold Kumba Iron Ore shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Kumba Iron Ore is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Kumba Iron Ore you should be aware of, and 1 of these is a bit unpleasant.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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