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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Kenmare Resources plc's (LON:KMR) case, it's fantastic news for shareholders.
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 Kenmare Resources
The Last 12 Months Of Insider Transactions At Kenmare Resources
In the last twelve months, the biggest single purchase by an insider was when MD & Executive Director Michael Carvill bought UK£46k worth of shares at a price of UK£4.32 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£4.13). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Kenmare Resources insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insiders At Kenmare Resources Have Bought Stock Recently
It's good to see that Kenmare Resources insiders have made notable investments in the company's shares. Overall, three insiders shelled out UK£88k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Kenmare Resources insiders own about UK£4.3m worth of shares (which is 1.2% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Kenmare Resources Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Kenmare Resources insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Kenmare Resources (of which 1 shouldn't be ignored!) you should know about.