We wouldn't blame Kinross Gold Corporation (TSE:K) shareholders if they were a little worried about the fact that William Dunford, the Executive VP & Chief Technical Officer recently netted about CA$1.2m selling shares at an average price of CA$40.77. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Kinross Gold
The Executive Vice President, Claude J. Schimper, made the biggest insider sale in the last 12 months. That single transaction was for CA$2.1m worth of shares at a price of CA$50.08 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$45.09. So it may not shed much light on insider confidence at current levels.
Happily, we note that in the last year insiders paid CA$84k for 1.85k shares. But insiders sold 248.62k shares worth CA$10m. Over the last year we saw more insider selling of Kinross Gold shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Kinross Gold
I will like Kinross Gold 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.
Does Kinross Gold Boast High 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. Kinross Gold insiders own about CA$255m worth of shares (which is 0.5% of the company). 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 Do The Kinross Gold Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Kinross Gold is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Kinross Gold (1 is a bit unpleasant!) that we believe deserve your full attention.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.