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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Kraken Robotics Inc. (CVE:PNG).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Kraken Robotics
The Last 12 Months Of Insider Transactions At Kraken Robotics
In the last twelve months, the biggest single sale by an insider was when the President, Karl Kenny, sold CA$450k worth of shares at a price of CA$0.30 per share. That means that even when the share price was below the current price of CA$0.59, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 5.4% of Karl Kenny's holding. The only individual insider seller over the last year was Karl Kenny.
The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Kraken Robotics Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Kraken Robotics. CFO & Corporate Secretary Greg Reid purchased CA$23k worth of shares in that period. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.