Insiders Of Kinetiko Energy Are Up 35% On Their AU$2.89m Purchase

Kinetiko Energy Limited (ASX:KKO) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 15%, resulting in a AU$15m rise in the company's market capitalisation, translating to a gain of 35% on their initial investment. Put another way, the original AU$2.89m acquisition is now worth AU$3.90m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Kinetiko Energy

In the last twelve months, the biggest single purchase by an insider was when insider Brendan Gore bought AU$2.2m worth of shares at a price of AU$0.06 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.075. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Kinetiko Energy 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!

Check out our latest analysis for Kinetiko Energy

Kinetiko Energy is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Kinetiko Energy Insiders Bought Stock Recently

Over the last quarter, Kinetiko Energy insiders have spent a meaningful amount on shares. insider Brendan Gore spent AU$2.6m on stock, and there wasn't any selling. This makes one think the business has some good points.

Insider Ownership Of Kinetiko Energy

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Kinetiko Energy insiders own 52% of the company, currently worth about AU$60m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Kinetiko Energy Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Kinetiko Energy. One for the watchlist, at least! 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. When we did our research, we found 4 warning signs for Kinetiko Energy (2 make us uncomfortable!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.