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30% Of This Kraft Heinz Insider's Holdings Were Sold

Insiders were net sellers of The Kraft Heinz Company's (NASDAQ:KHC ) stock during the past year. That is, insiders sold more stock than they bought.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Kraft Heinz

Kraft Heinz Insider Transactions Over The Last Year

The Executive VP and Chief Legal & Corporate Affairs Officer, Rashida La Lande, made the biggest insider sale in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$41.00 each. 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 US$34.81. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Rashida La Lande.

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Rashida La Lande sold a total of 54.69k shares over the year at an average price of US$37.76. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

I will like Kraft Heinz better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Kraft Heinz Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Kraft Heinz. Specifically, Executive VP and Chief Legal & Corporate Affairs Officer Rashida La Lande ditched US$463k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Kraft Heinz Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Kraft Heinz insiders own about US$102m worth of shares (which is 0.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Kraft Heinz Insider Transactions Indicate?

An insider sold Kraft Heinz shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Kraft Heinz makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Kraft Heinz has 1 warning sign we think you should be aware of.

But note: Kraft Heinz 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 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.

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.