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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 Kirkland Lake Discoveries Corp. (CVE:KLDC), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Kirkland Lake Discoveries
Over the last year, we can see that the biggest insider purchase was by insider Eric Sprott for CA$200k worth of shares, at about CA$0.05 per share. That means that an insider was happy to buy shares at above the current price of CA$0.025. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Kirkland Lake Discoveries insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Kirkland Lake Discoveries
Kirkland Lake Discoveries 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.
Insider Ownership Of Kirkland Lake Discoveries
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. Insiders own 5.5% of Kirkland Lake Discoveries shares, worth about CA$152k, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Kirkland Lake Discoveries Insiders?
The fact that there have been no Kirkland Lake Discoveries insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Kirkland Lake Discoveries stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kirkland Lake Discoveries. Be aware that Kirkland Lake Discoveries is showing 6 warning signs in our investment analysis, and 5 of those shouldn't be ignored...