Whilst it may not be a huge deal, we thought it was good to see that the KAP Limited (JSE:KAP) CFO & Executive Director, Frans Olivier, recently bought R974k worth of stock, for R2.03 per share. While that isn't the hugest buy, it actually boosted their shareholding by 100%, which is good to see.
Check out our latest analysis for KAP
The Last 12 Months Of Insider Transactions At KAP
In fact, the recent purchase by Frans Olivier was the biggest purchase of KAP shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of R2.14 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the KAP insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Frans Olivier.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
KAP 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
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests KAP insiders own 0.4% of the company, worth about R22m. We consider this fairly low insider ownership.
So What Does This Data Suggest About KAP Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of KAP we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing KAP. Case in point: We've spotted 3 warning signs for KAP you should be aware of, and 1 of these is potentially serious.
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.