We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Kazakhstan Potash Corporation Limited (ASX:KPC), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Check out our latest analysis for Kazakhstan Potash
Kazakhstan Potash Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Executive Director & Company Secretary Marco Marcou for AU$111k worth of shares, at about AU$0.025 per share. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of AU$0.02. So it may not shed much light on insider confidence at current levels. Marco Marcou was the only individual insider to sell shares in the last twelve months.
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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Kazakhstan Potash
Many investors like to check how much of a company is owned by 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. It appears that Kazakhstan Potash insiders own 30% of the company, worth about AU$9.3m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Kazakhstan Potash Insider Transactions Indicate?
It doesn’t really mean much that no insider has traded Kazakhstan Potash shares in the last quarter. Our analysis of Kazakhstan Potash insider transactions leaves us cautious. But it’s good to see that insiders own shares in the company. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.