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 Kolibri Global Energy Inc. (TSE:KEI), 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.
See our latest analysis for Kolibri Global Energy
Kolibri Global Energy Insider Transactions Over The Last Year
Notably, that recent purchase by David Neuhauser is the biggest insider purchase of Kolibri Global Energy shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$5.61). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing 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.
In the last twelve months insiders purchased 42.29k shares for CA$236k. But insiders sold 10.13k shares worth CA$51k. In total, Kolibri Global Energy insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Kolibri Global Energy is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Kolibri Global Energy Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Kolibri Global Energy, over the last three months. In total, two insiders bought CA$228k worth of shares in that time. But Independent Director Eric Brown sold shares worth CA$31k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
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. It appears that Kolibri Global Energy insiders own 16% of the company, worth about CA$31m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.