Insider Buyers At Kirkland Lake Discoveries Sitting On CA$693k Profit

Insiders who bought Kirkland Lake Discoveries Corp. (CVE:KLDC) in the last 12 months may probably not pay attention to the stock’s recent 17% drop. Reason being, despite the recent loss, insiders original purchase value of CA$1.32m is now worth CA$2.02m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Kirkland Lake Discoveries

The insider Eric Sprott made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.0m worth of shares at a price of CA$0.25 each. Even though the purchase was made at a significantly lower price than the recent price (CA$0.34), we still think insider buying is a positive. 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.

Kirkland Lake Discoveries insiders may have bought shares in the last year, but they didn’t sell any. The average buy price was around CA$0.22. We don’t deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today’s share 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!

View our latest analysis for Kirkland Lake Discoveries

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Kirkland Lake Discoveries

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 7.3% of Kirkland Lake Discoveries shares, worth about CA$5.0m, according to our data. Whilst better than nothing, we’re not overly impressed by these holdings.

So What Does This Data Suggest About Kirkland Lake Discoveries Insiders?

It doesn’t really mean much that no insider has traded Kirkland Lake Discoveries shares in the last quarter. However, our analysis of transactions over the last year is heartening. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Kirkland Lake Discoveries insiders are doubting the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Kirkland Lake Discoveries. To that end, you should learn about the 5 warning signs we’ve spotted with Kirkland Lake Discoveries (including 4 which are concerning).

Of course Kirkland Lake Discoveries may not be the best stock to buy. So you may wish to see this free collection of high quality 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.