Don't Ignore The Fact That This Insider Just Sold Some Shares In Keytone Dairy Corporation Limited (ASX:KTD)

Anyone interested in Keytone Dairy Corporation Limited (ASX:KTD) should probably be aware that a company insider, Vivienne Cheung, recently divested AU$631k worth of shares in the company, at an average price of AU$0.25 each. That sale was 11% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Keytone Dairy

Keytone Dairy Insider Transactions Over The Last Year

In fact, the recent sale by Vivienne Cheung was the biggest sale of Keytone Dairy shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of AU$0.23. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Keytone Dairy insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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 Keytone Dairy insiders own 22% of the company, worth about AU$13m. 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 Keytone Dairy Insiders?

An insider hasn't bought Keytone Dairy stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 5 warning signs for Keytone Dairy (2 are a bit concerning!) and we strongly recommend you look at these before investing.

Of course Keytone Dairy 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. 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.
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