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The CEO, President & Director of Kelt Exploration Ltd. (TSE:KEL), David Wilson, Just Bought A Few More Shares

Simply Wall St
·3 mins read

Whilst it may not be a huge deal, we thought it was good to see that the Kelt Exploration Ltd. (TSE:KEL) CEO, President & Director, David Wilson, recently bought CA$119k worth of stock, for CA$1.59 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Kelt Exploration

The Last 12 Months Of Insider Transactions At Kelt Exploration

In fact, the recent purchase by CEO, President & Director David Wilson was not their only acquisition of Kelt Exploration shares this year. They previously made an even bigger purchase of CA$2.2m worth of shares at a price of CA$1.35 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$1.71), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 2.11m shares for CA$3.3m. But insiders sold 384.18k shares worth CA$3.8k. In the last twelve months there was more buying than selling by Kelt Exploration insiders. They paid about CA$1.55 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

Kelt Exploration 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.

Insider Ownership of Kelt Exploration

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. It appears that Kelt Exploration insiders own 14% of the company, worth about CA$46m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Kelt Exploration Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Kelt Exploration that deserve your attention before buying any shares.

Of course Kelt Exploration may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.