Even if it’s not a huge purchase, we think it was good to see that Andrew Nace, the of Kronos Worldwide, Inc. (NYSE:KRO) recently shelled out US$67k to buy stock, at US$11.21 per share. Even though that isn’t a massive buy, it did increase their holding by 1263.2%, which is a arguably a good sign.
The Last 12 Months Of Insider Transactions At Kronos Worldwide
Over the last year, we can see that the biggest insider purchase was by Vice Chairman of the Board Robert Graham for US$125k worth of shares, at about US$12.50 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$10.64). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. 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 paid US$246k for 21011.41 shares purchased. While Kronos Worldwide insiders bought shares last year, they didn’t sell. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Does Kronos Worldwide Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$1.4m worth of Kronos Worldwide stock, about 0.1% of the company. But they may have an indirect interest through a corporate structure that we haven’t picked up on. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Kronos Worldwide Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Kronos Worldwide insiders are expecting a bright future. Of course, the future is what matters most. So if you are interested in Kronos Worldwide, you should check out this free report on analyst forecasts for the company.
But note: Kronos Worldwide 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.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.