This Insider Has Just Sold Shares In Kelly Partners Group Holdings

We'd be surprised if Kelly Partners Group Holdings Limited (ASX:KPG) shareholders haven't noticed that the Founder, Brett Kelly, recently sold AU$168k worth of stock at AU$6.72 per share. On the bright side, that sale was only 0.1% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Kelly Partners Group Holdings

Kelly Partners Group Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Founder Brett Kelly was not the only time they sold Kelly Partners Group Holdings shares this year. They previously made an even bigger sale of -AU$1.2m worth of shares at a price of AU$5.40 per share. That means that even when the share price was below the current price of AU$6.69, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 1.0% of Brett Kelly's holding.

Over the last year, we can see that insiders have bought 25.11k shares worth AU$125k. But insiders sold 939.02k shares worth AU$4.7m. Brett Kelly sold a total of 939.02k shares over the year at an average price of AU$4.98. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Kelly Partners Group Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Kelly Partners Group Holdings insiders own about AU$159m worth of shares (which is 53% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Kelly Partners Group Holdings Tell Us?

Unfortunately, there has been more insider selling of Kelly Partners Group Holdings stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. 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. Case in point: We've spotted 3 warning signs for Kelly Partners Group Holdings you should be aware of.

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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.