K92 Mining President & Chief Operating Officer David Medilek Sells 45% Of Holding

We wouldn't blame K92 Mining Inc. (TSE:KNT) shareholders if they were a little worried about the fact that David Medilek, the President & Chief Operating Officer recently netted about CA$3.1m selling shares at an average price of CA$20.90. That sale reduced their total holding by 45% which is hardly insignificant, but far from the worst we've seen.

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K92 Mining Insider Transactions Over The Last Year

The CEO & Director, John Lewins, made the biggest insider sale in the last 12 months. That single transaction was for CA$5.1m worth of shares at a price of CA$16.94 each. That means that even when the share price was below the current price of CA$22.18, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 5.9% of John Lewins's holding.

Insiders in K92 Mining didn't buy any shares in the last year. 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!

View our latest analysis for K92 Mining

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Does K92 Mining Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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's great to see that K92 Mining insiders own 2.7% of the company, worth about CA$143m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At K92 Mining Tell Us?

Insiders sold K92 Mining shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since K92 Mining is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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 help with this, we've discovered 2 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in K92 Mining.

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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.