Even if it's not a huge purchase, we think it was good to see that Alejandro Gubbins Cox, a Kingfisher Metals Corp. (CVE:KFR) insider, recently shelled out CA$64k to buy stock, at CA$0.10 per share. However, it only increased their shares held by 3.2%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Kingfisher Metals

Kingfisher Metals Insider Transactions Over The Last Year

In fact, the recent purchase by insider Alejandro Gubbins Cox was not their only acquisition of Kingfisher Metals shares this year. Earlier in the year, they paid CA$0.28 per share in a CA$1.1m purchase. That means that an insider was happy to buy shares at above the current price of CA$0.10. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Kingfisher Metals insiders bought shares during the last year, they didn't sell. They paid about CA$0.24 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Kingfisher Metals 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.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. 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 appears that Kingfisher Metals insiders own 27% of the company, worth about CA$2.8m. 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 Do The Kingfisher Metals Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Kingfisher Metals 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. When we did our research, we found 5 warning signs for Kingfisher Metals (3 make us uncomfortable!) that we believe deserve your full attention.

But note: Kingfisher Metals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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