Yahoo Finance CEO, President & Non-Independent Director David Wilson Just Bought A Handful Of Shares In Kelt Exploration Ltd. (TSE:KEL)
Investors who take an interest in Kelt Exploration Ltd. (TSE:KEL) should definitely note that the CEO, President & Non-Independent Director, David Wilson, recently paid CA$4.95 per share to buy CA$223k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
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 & Non-Independent Director David Wilson was not their only acquisition of Kelt Exploration shares this year. Earlier in the year, they paid CA$5.31 per share in a CA$4.1m purchase. That means that an insider was happy to buy shares at above the current price of CA$5.19. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid CA$6.7m for 1.19m shares. On the other hand they divested 335.24k shares, for CA$2.5m. In the last twelve months there was more buying than selling by Kelt Exploration insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Kelt Exploration insiders own 17% of the company, currently worth about CA$169m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Kelt Exploration Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Kelt Exploration. That's what I like to see! 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 1 warning sign for Kelt Exploration that deserve your attention before buying any shares.
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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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