This Insider Has Just Sold Shares In Kumba Iron Ore

We wouldn't blame Kumba Iron Ore Limited (JSE:KIO) shareholders if they were a little worried about the fact that Themba Mkhwanazi, the Non Executive Director recently netted about R11m selling shares at an average price of R370. That sale reduced their total holding by 22% which is hardly insignificant, but far from the worst we've seen.

See 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. That means that an insider was selling shares at around the current price of R356. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year Kumba Iron Ore insiders didn't buy any company stock. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Kumba Iron Ore Boast High Insider Ownership?

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. From looking at our data, insiders own R73m worth of Kumba Iron Ore stock, about 0.06% of the company. I generally like to see higher levels of ownership.

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

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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. For example - Kumba Iron Ore has 2 warning signs we think you should be aware of.

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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.