Insider Purchases Worth CA$1.70m See Losses As Kane Biotech Market Value Drops To CA$6.2m
The recent 14% drop in Kane Biotech Inc.'s (CVE:KNE) stock could come as a blow to insiders who purchased CA$1.70m worth of stock at an average buy price of CA$0.05 over 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 CA$1.02m.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Kane Biotech Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chairman Philip Renaud for CA$1m worth of shares, at about CA$0.05 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.03). 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 encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Philip Renaud was the only individual insider to buy shares in the last twelve months.
Philip Renaud purchased 34.00m shares over the year. The average price per share was CA$0.05. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Kane Biotech
Kane Biotech is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Kane Biotech
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Kane Biotech insiders own about CA$2.7m worth of shares (which is 45% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Kane Biotech Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Kane Biotech insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 6 warning signs (5 can't be ignored!) that you ought to be aware of before buying any shares in Kane Biotech.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.