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Insiders who acquired US$73.7k worth of Kavango Resources Plc's (LON:KAV) stock at an average price of US$0.0094 in the past 12 months may be dismayed by the recent 14% price decline. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$48.9k, which is not what they expected.
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 Kavango Resources
The Last 12 Months Of Insider Transactions At Kavango Resources
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Matthew Turney bought UK£50k worth of shares at a price of UK£0.008 per share. That means that even when the share price was higher than UK£0.0063 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Matthew Turney was the only individual insider to buy shares in the last twelve months. We note that Matthew Turney was both the biggest buyer and the biggest seller.
Matthew Turney bought 7.82m shares over the last 12 months at an average price of UK£0.0094. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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
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. Our data indicates that Kavango Resources insiders own about UK£748k worth of shares (which is 9.2% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.