Much research shows that executives, directors or others with inside knowledge of a public company, buying its shares is a useful barometer of broad shifts in market sentiment of the stock. This is because their access to information aids them in more informed decision-making. However, its certainly not enough to base your investment decision based on insider transactions, but these events do warrant a deeper dive into the stocks.
Klondex Mines Ltd. (TSX:KDX)
Klondex Mines Ltd., together with its subsidiaries, acquires, explores, develops, and produces mineral properties in the United States and Canada. Formed in 1971, and headed by CEO Paul Huet, the company now has 400 employees and has a market cap of CAD CA$359.22M, putting it in the small-cap group.
Klondex Mines Ltd (TSX:KDX) is one of United States’s small-cap stocks that saw some insider buying over the past three months, with insiders investing in 24,000 shares during this period. In total, individual insiders own over 3 million shares in the business, which makes up around 1.83% of total shares outstanding.
Insiders that have recently ramped up their holdings are: Paul Huet (board member) . , Richard Hall (management and board member) . and William Matlack (board member) .
Analysts anticipate a relatively flat top-line growth year-on-year over the next couple of years. However, earnings are predicted to grow at an impressive rate of 126.89% in the upcoming year, from today’s level, which could indicate the company’s cost controls will show meaningful results, offsetting the slow revenue growth. Insiders may have confidence in these cost initiatives, or believe the market has overly penalized the company’s shares, leading to an opportune time to buy. Dig deeper into Klondex Mines here.
TSX:HCG Insider_trading Feb 14th 18
For more stocks with high, positive trading volume by insiders, take a look at our free platform to explore the interactive list of stocks with recent insider buying.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.