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Kalgoorlie Gold Mining Limited (ASX:KAL) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 37%, resulting in a AU$5.5m rise in the company's market capitalisation, translating to a gain of 60% on their initial investment. As a result, the stock they originally bought for AU$791.2k is now worth AU$1.26m.
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.
Kalgoorlie Gold Mining Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Eduard Eshuys for AU$741k worth of shares, at about AU$0.06 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.074. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Kalgoorlie Gold Mining insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.046. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!
Check out our latest analysis for Kalgoorlie Gold Mining
Kalgoorlie Gold Mining is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Kalgoorlie Gold Mining Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Kalgoorlie Gold Mining. insider Eduard Eshuys spent AU$741k on stock, and there wasn't any selling. That shows some optimism about the company's future.
Does Kalgoorlie Gold Mining Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 18% of Kalgoorlie Gold Mining shares, worth about AU$3.6m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.