Trade Alert: The Independent Non-Executive Director Of Kip McGrath Education Centres Limited (ASX:KME), Trevor Folsom, Has Just Spent AU$261k Buying 57% More Shares

Potential Kip McGrath Education Centres Limited (ASX:KME) shareholders may wish to note that the Independent Non-Executive Director, Trevor Folsom, recently bought AU$261k worth of stock, paying AU$1.19 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 57%, potentially signalling some real optimism.

Check out our latest analysis for Kip McGrath Education Centres

Kip McGrath Education Centres Insider Transactions Over The Last Year

In fact, the recent purchase by Trevor Folsom was the biggest purchase of Kip McGrath Education Centres shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$1.20 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

Kip McGrath Education Centres insiders may have bought shares in the last year, but they didn't sell any. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Kip McGrath Education Centres 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. It appears that Kip McGrath Education Centres insiders own 29% of the company, worth about AU$19m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Kip McGrath Education Centres Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Kip McGrath Education Centres we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kip McGrath Education Centres. To that end, you should learn about the 4 warning signs we've spotted with Kip McGrath Education Centres (including 2 which are significant).

Of course Kip McGrath Education Centres 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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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.