Yahoo Finance The CEO, President & Director of Kelt Exploration Ltd. (TSE:KEL), David Wilson, Just Bought 11% More Shares
Kelt Exploration Ltd. (TSE:KEL) shareholders (or potential shareholders) will be happy to see that the CEO, President & Director, David Wilson, recently bought a whopping CA$2.2m worth of stock, at a price of CA$1.30. Not only is that a big swing, but it increased their holding size by 11%, which is definitely great to see.
View our latest analysis for Kelt Exploration
Kelt Exploration Insider Transactions Over The Last Year
Notably, that recent purchase by David Wilson is the biggest insider purchase of Kelt Exploration 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$0.80). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Kelt Exploration insiders bought shares last year, they didn't sell. The average buy price was around CA$2.10. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Kelt Exploration is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Kelt Exploration Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Kelt Exploration insiders own about CA$23m worth of shares. That equates to 15% of the company. 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 Do The Kelt Exploration Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Kelt Exploration insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 4 warning signs we've spotted with Kelt Exploration (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.
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