Should You Be Worried About Insider Transactions At Kinross Gold Corporation (TSE:K)?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Kinross Gold Corporation (TSE:K).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
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Kinross Gold Insider Transactions Over The Last Year
Gregory Van Etter made the biggest insider sale in the last 12 months. That single transaction was for CA$406k worth of shares at a price of CA$5.04 each. That is hardly a positive sign, even though it took place above the latest price (CA$4.19). So it may not tell us anything about how insiders feel about the current share price.
All up, insiders sold more shares in Kinross Gold than they bought, over the last year. The average sell price was around US$4.35. It’s not particularly great to see insiders were selling shares around current prices (shares recently traded around CA$4.19). Since insiders sell for many reasons, we wouldn’t put too much weight on it. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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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. We usually like to see fairly high levels of insider ownership. Kinross Gold insiders own about CA$24m worth of shares. That equates to 0.5% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Kinross Gold Insider Transactions Indicate?
The fact that there have been no Kinross Gold insider transactions recently certainly doesn’t bother us. Our analysis of Kinross Gold insider transactions leaves us cautious. But it’s good to see that insiders own shares in the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
