Founder of Kogan.com Ruslan Kogan Buys 6.3% More Shares

Kogan.com Ltd (ASX:KGN) shareholders (or potential shareholders) will be happy to see that the Founder, Ruslan Kogan, recently bought a whopping AU$4.8m worth of stock, at a price of AU$4.77. 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 6.3%.

See our latest analysis for Kogan.com

The Last 12 Months Of Insider Transactions At Kogan.com

Over the last year, we can see that the biggest insider sale was by the CFO, COO & Executive Director, David Shafer, for AU$16m worth of shares, at about AU$8.00 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (AU$5.07). So it is hard to draw any strong conclusion from it. David Shafer was the only individual insider to sell over the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Kogan.com Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 20% of Kogan.com shares, worth about AU$100m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Kogan.com Insider Transactions Indicate?

It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by Kogan.com insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kogan.com. At Simply Wall St, we found 2 warning signs for Kogan.com that deserve your attention before buying any shares.

Of course Kogan.com 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 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.