From what we can see, insiders were net buyers in KOP Limited's (Catalist:5I1 ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for KOP
KOP Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Seng Hui Goi bought S$644k worth of shares at a price of S$0.047 per share. Even though the purchase was made at a significantly lower price than the recent price (S$0.054), 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.
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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of KOP
For a common shareholder, it is worth checking how many shares are held by company 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 KOP insiders own 38% of the company, worth about S$23m. 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 KOP Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in KOP shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that KOP has 4 warning signs (2 are a bit unpleasant!) that deserve your attention before going any further with your analysis.
But note: KOP may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.