KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) shareholders (or potential shareholders) will be happy to see that the Chairman, Amin Khoury, recently bought a whopping US$1.2m worth of stock, at a price of US$11.85. There’s no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 8.6%.
The Last 12 Months Of Insider Transactions At KLX Energy Services Holdings
Gary Roberts made the biggest insider purchase in the last 12 months. That single transaction was for US$2.6m worth of shares at a price of US$31.65 each. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$10.91). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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.
Over the last year, we can see that insiders have bought 282k shares worth US$6.0m. In the last twelve months KLX Energy Services Holdings insiders were buying shares, but not selling. They paid about US$21.26 on average. I’d consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 11% of KLX Energy Services Holdings shares, worth about US$27m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About KLX Energy Services Holdings Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest KLX Energy Services Holdings insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course KLX Energy Services Holdings 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, but not derivative transactions.
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