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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Kalo Gold Corp. (CVE:KALO), it sends a favourable message to the company's 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.
Kalo Gold Insider Transactions Over The Last Year
The Executive VP of Capital Markets Kevin Ma made the biggest insider purchase in the last 12 months. That single transaction was for CA$91k worth of shares at a price of CA$0.03 each. We do like to see buying, but this purchase was made at well below the current price of CA$0.05. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Kalo Gold insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Kalo Gold
Kalo Gold is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Kalo Gold Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Kalo Gold insiders own about CA$3.7m worth of shares. That equates to 38% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Kalo Gold Tell Us?
It doesn't really mean much that no insider has traded Kalo Gold shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Kalo Gold insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 4 warning signs for Kalo Gold and we suggest you have a look.