Have Kenorland Minerals Insiders Been Selling Stock?

Some Kenorland Minerals Ltd. (CVE:KLD) shareholders may be a little concerned to see that insider John Tognetti recently sold a substantial CA$18m worth of stock at a price of CA$2.22 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 77% of their entire holding.

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Kenorland Minerals Insider Transactions Over The Last Year

Notably, that recent sale by John Tognetti is the biggest insider sale of Kenorland Minerals shares that we've seen in the last year. That means that even when the share price was slightly below the current price of CA$2.26, 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. We note that the biggest single sale was 77% of John Tognetti's holding.

In the last twelve months insiders purchased 100.55k shares for CA$248k. But insiders sold 10.08m shares worth CA$22m. All up, insiders sold more shares in Kenorland Minerals than they bought, over the last year. The sellers received a price of around CA$2.22, on average. It's not ideal to see that insiders have sold at around the current price. Since insiders sell for many reasons, we wouldn't put too much weight on it. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Kenorland Minerals

I will like Kenorland Minerals better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Kenorland Minerals insiders own about CA$45m worth of shares. That equates to 23% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Kenorland Minerals Insiders?

Insiders sold Kenorland Minerals shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kenorland Minerals. When we did our research, we found 3 warning signs for Kenorland Minerals (1 is potentially serious!) that we believe deserve your full attention.

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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.