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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Kingfisher Metals Corp. (CVE:KFR), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Kingfisher Metals
The Last 12 Months Of Insider Transactions At Kingfisher Metals
The insider Alejandro Gubbins Cox made the biggest insider purchase in the last 12 months. That single transaction was for CA$200k worth of shares at a price of CA$0.17 each. We do like to see buying, but this purchase was made at well below the current price of CA$0.22. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Kingfisher Metals insiders bought shares during the last year, they didn't sell. 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!
Kingfisher Metals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Kingfisher Metals Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 19% of Kingfisher Metals shares, worth about CA$1.7m. 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 Kingfisher Metals Insiders?
It doesn't really mean much that no insider has traded Kingfisher Metals shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Kingfisher Metals and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 5 warning signs that you should run your eye over to get a better picture of Kingfisher Metals.
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.