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Insiders who purchased Keras Resources Plc (LON:KRS) earlier this year lose an additional UK£23k as the stock sinks to UK£0.00052

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The recent price decline of 13% in Keras Resources Plc's (LON:KRS) stock may have disappointed insiders who bought UK£71k worth of shares at an average price of UK£0.00078 in the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only UK£48k.

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.

Check out our latest analysis for Keras Resources

Keras Resources Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Founder, Russell Lamming, sold UK£50k worth of shares at a price of UK£0.0011 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of UK£0.00052. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Russell Lamming. Notably Russell Lamming was also the biggest buyer, having purchased UK£71k worth of shares.

In the last twelve months insiders purchased 90.55m shares for UK£71k. But insiders sold 45.58m shares worth UK£50k. Overall, Keras Resources insiders were net buyers during the last year. Their average price was about UK£0.00078. This is nice to see since it implies that insiders might see value around current prices. 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!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Keras Resources Insiders Bought Stock Recently

There was some insider buying at Keras Resources over the last quarter. Insiders purchased UK£30k worth of shares in that period. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Insider Ownership of Keras Resources

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Keras Resources insiders own about UK£780k worth of shares. That equates to 24% 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 Keras Resources Insiders?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Keras Resources and we see no evidence to suggest they are worried about the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 5 warning signs for Keras Resources (of which 3 are a bit unpleasant!) you should know about.

But note: Keras Resources 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.

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.

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

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