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In the last year, multiple insiders have substantially increased their holdings of Kingston Resources Limited (ASX:KSN) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Kingston Resources
Kingston Resources Insider Transactions Over The Last Year
The insider Ian Ingram made the biggest insider purchase in the last 12 months. That single transaction was for AU$1.9m worth of shares at a price of AU$0.065 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.094), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Kingston Resources insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Kingston Resources is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 11% of Kingston Resources shares, worth about AU$7.6m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Kingston Resources Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Kingston Resources shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Kingston Resources stock. 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. While conducting our analysis, we found that Kingston Resources has 2 warning signs and it would be unwise to ignore them.