Koonenberry Gold Reaches AU$4.6m Market Cap Benefiting Insider Stock Buying

Koonenberry Gold Limited (ASX:KNB) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 14% resulting in a AU$2.7m addition to the company’s market value. As a result, their original purchase of AU$308.4k worth of stock is now worth AU$352.5k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Koonenberry Gold

Koonenberry Gold Insider Transactions Over The Last Year

In fact, the recent purchase by Peter Proksa was the biggest purchase of Koonenberry Gold shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.016. 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 Koonenberry Gold insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and 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!

Koonenberry Gold 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.

Insiders At Koonenberry Gold Have Bought Stock Recently

Over the last three months, we’ve seen significant insider buying at Koonenberry Gold. In total, insiders bought AU$308k worth of shares in that time, and we didn’t record any sales whatsoever. This makes one think the business has some good points.

Does Koonenberry Gold Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Koonenberry Gold insiders own 16% of the company, worth about AU$732k. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Koonenberry Gold Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don’t feel the same about the fact the company is making losses. Insiders likely see value in Koonenberry Gold shares, given these transactions (along with notable insider ownership of the company). So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. Every company has risks, and we’ve spotted 5 warning signs for Koonenberry Gold you should know about.

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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 of direct interests only, but not derivative transactions or indirect interests.

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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.