Yahoo Finance Pleasing Signs As A Number Of Insiders Buy KMD Brands Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in KMD Brands Limited's (NZSE:KMD) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for KMD Brands
The Last 12 Months Of Insider Transactions At KMD Brands
The Independent Non-Executive Chairman David Kirk made the biggest insider purchase in the last 12 months. That single transaction was for NZ$179k worth of shares at a price of NZ$0.88 each. That means that even when the share price was higher than NZ$0.36 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 738.54k shares for NZ$469k. On the other hand they divested 100.00k shares, for NZ$51k. In total, KMD Brands insiders bought more than they sold over the last year. The average buy price was around NZ$0.63. 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. By clicking on the graph below, you can see the precise details of each insider transaction!
KMD Brands is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Are KMD Brands Insiders Buying Or Selling?
We saw some KMD Brands insider buying shares in the last three months. Independent Non Executive Director Andrea Martens bought NZ$11k worth of shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Does KMD Brands Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. Our information indicates that KMD Brands insiders own about NZ$1.1m worth of shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We might be missing something but that seems like very low insider ownership.
So What Does This Data Suggest About KMD Brands Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more KMD Brands stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing KMD Brands. Every company has risks, and we've spotted 2 warning signs for KMD Brands you should know about.
Of course KMD Brands may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
