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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Kavango Resources Plc's (LON:KAV) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Kavango Resources
The Last 12 Months Of Insider Transactions At Kavango Resources
Over the last year, we can see that the biggest insider purchase was by CEO & Director Matthew Turney for UK£50k worth of shares, at about UK£0.008 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.012. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months Kavango Resources insiders were buying shares, but not selling. 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Kavango Resources
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. We usually like to see fairly high levels of insider ownership. From our data, it seems that Kavango Resources insiders own 6.8% of the company, worth about UK£1.1m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Kavango Resources Tell Us?
It doesn't really mean much that no insider has traded Kavango Resources shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Kavango Resources stock. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 5 warning signs we've spotted with Kavango Resources (including 3 which are a bit concerning).