We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Kina Securities Limited (ASX:KSL), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Kina Securities Insider Transactions Over The Last Year
CEO, MD & Director Gregory Pawson made the biggest insider purchase in the last 12 months. That single transaction was for AU$154k worth of shares at a price of AU$1.15 each. That implies that an insider found the current (approximate) price enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. We generally consider it a positive if insiders have been buying on market, even if the share price has increased a bit since then.
Over the last year, we can see that insiders have bought 283.23k shares worth AU$315k. Overall, Kina Securities insiders were net buyers last year. The average buy price was around AU$1.11. It’s great to see insiders putting their own cash into the company’s stock, albeit at below the recent share price (AU$1.20). You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Kina Securities is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Kina Securities Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Kina Securities. Overall, 4 insiders shelled out K217k for shares in the company — and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership of Kina Securities
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Kina Securities insiders own 6.4% of the company, worth about AU$13m. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Does This Data Suggest About Kina Securities Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in Kina Securities shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Kina Securities, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.