Insiders of Kelt Exploration Ltd. (TSE:KEL) profited after buying shares worth C$6.5 million last year, current gains stand at C$656,000

Insiders who bought Kelt Exploration Ltd. (TSE:KEL) stocks over the past 12 months should not be deeply affected by the stock’s 8.3% decline over the past week. Even after taking into account the recent loss, the C$6.5 million worth of shares they bought are now worth C$7.2 million or, in other words, their investment is still yielding good yields.

While insider trading isn’t the most important thing when it comes to long-term investing, we think it makes perfect sense to keep tabs on what insiders are doing.

See our latest analysis for Kelt Exploration

The last 12 months of insider trading at Kelt Exploration

In the past twelve months, the largest single insider purchase was when CEO, Chairman and non-independent director David Wilson bought C$4.1 million worth of stock at a price of C$5.31. Canadians per share. Even though the purchase was made at a significantly lower price than the recent price (C$6.17), we still think insider buying is a positive. Because the stock was purchased at a lower price, this particular purchase tells us little about what insiders think of the stock’s current price.

Over the past year, we can see that insiders have purchased 1.16 million shares worth C$6.5 million. But they sold 359.15k shares for C$2.6 million. Overall, Kelt Exploration insiders have been net buyers over the past year. The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, how much and when, just click on the chart below!

volume-of-insider-trading

Kelt Exploration isn’t the only stock insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.

Kelt Exploration insiders recently bought shares

At Kelt Exploration, over the past quarter we have seen significantly more insider buying than insider selling. CEO, chairman and non-independent director David Wilson spent C$2.3 million on the stock. But insider Alan Franks sold shares worth C$775,000. We think insiders can be optimistic about the future as insiders have been net buyers of stocks.

Does Kelt Exploration boast of being insider owned?

I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. I think it’s a good sign if insiders have a significant number of shares in the company. Kelt Exploration insiders own approximately C$201 million of stock (or 17% of the company). This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.

So what does this data suggest about Kelt Exploration insiders?

The recent insider buying is encouraging. And longer-term insider trading also gives us confidence. Once you factor in the strong insider ownership, it certainly seems like insiders are positive about Kelt Exploration. Pleasant! In addition to knowing the current insider transactions, it is advantageous to identify the risks to which Kelt Exploration is exposed. Example: we have identified 1 warning sign for Kelt Exploration you should be aware.

Sure Kelt Exploration may not be the best stock to buy. So you might want to see this free set of high quality companies.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Join a Paid User Research Session
You will receive a $30 Amazon Gift Card for 1 hour of your time while helping us create better investment tools for individual investors like you. register here

Comments are closed.