Denis Wood Is The Executive Chairman of the Board of KGL Resources Limited (ASX:KGL) And They Just Picked Up 7.7% More Shares
KGL Resources Limited (ASX:KGL) shareholders (or potential shareholders) will be happy to see that the Executive Chairman of the Board, Denis Wood, recently bought a whopping AU$925k worth of stock, at a price of AU$0.42. While that only increased their holding size by 7.7%, it is still a big swing by our standards.
See our latest analysis for KGL Resources
The Last 12 Months Of Insider Transactions At KGL Resources
Notably, that recent purchase by Denis Wood is the biggest insider purchase of KGL Resources shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of AU$0.70. 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.
In the last twelve months KGL Resources insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of KGL Resources
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 12% of KGL Resources shares, worth about AU$34m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About KGL Resources Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in KGL Resources shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with KGL Resources (including 2 which don't sit too well with us).
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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