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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Kane Biotech Inc. (CVE:KNE), that sends out a positive message to the company's shareholders.
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 Kane Biotech
Kane Biotech Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Vice Chairman, Philip Renaud, for CA$260k worth of shares, at about CA$0.13 per share. That means that an insider was selling shares at below the current price (CA$0.13). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 7.3% of Philip Renaud's stake. Philip Renaud was the only individual insider to sell shares in the last twelve months.
Happily, we note that in the last year insiders paid CA$360k for 3.33m shares. On the other hand they divested 2.00m shares, for CA$260k. Overall, Kane Biotech insiders were net buyers during the last year. 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!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Kane Biotech Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Kane Biotech. Not only was there no selling that we can see, but they collectively bought CA$312k worth of shares. This is a positive in our book as it implies some confidence.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Kane Biotech insiders own 37% of the company, worth about CA$6.5m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.