Potential Kinetic Mines and Energy Limited (HKG:1277) shareholders may wish to note that the Executive Chairman, Li Zhang, recently bought CN¥3.8m worth of stock, paying CN¥0.41 for each share. Although the purchase only increased their holding by 1.0%, it is still a solid purchase in our view.
Kinetic Mines and Energy Insider Transactions Over The Last Year
Notably, that recent purchase by Executive Chairman Li Zhang was not the only time they bought Kinetic Mines and Energy shares this year. Earlier in the year, they paid HK$0.42 per share in a HK$23m purchase. That means that even when the share price was higher than HK$0.40 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Li Zhang was the only individual insider to buy over the year.
Li Zhang purchased 63264000 shares over the year. The average price per share was HK$0.42. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Kinetic Mines and Energy Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Kinetic Mines and Energy insiders own 74% of the company, currently worth about HK$2.5b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Kinetic Mines and Energy Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Kinetic Mines and Energy insiders are well aligned, and quite possibly think the share price is too low. Looks promising! Along with insider transactions, I recommend checking if Kinetic Mines and Energy is growing revenue. This free chart of historic revenue and earnings should make that easy.
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.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.