Founder Ruslan Kogan Just Sold A Bunch Of Shares In Kogan.com Ltd (ASX:KGN)

We wouldn't blame Kogan.com Ltd (ASX:KGN) shareholders if they were a little worried about the fact that Ruslan Kogan, the Founder recently netted about AU$114m selling shares at an average price of AU$21.60. That sale reduced their total holding by 25% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Kogan.com

The Last 12 Months Of Insider Transactions At Kogan.com

Notably, that recent sale by Ruslan Kogan is the biggest insider sale of Kogan.com shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of AU$21.99. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. We note that the biggest single sale was only 25%of Ruslan Kogan's holding.

In the last twelve months insiders purchased 22.50k shares for AU$146k. On the other hand they divested 12.69m shares, for AU$189m. In total, Kogan.com insiders sold more than they bought over the last year. The average sell price was around AU$14.88. We don't gain confidence from insider selling below the recent share price. But we wouldn't put too much weight on the insider selling. 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: insiders have been buying them).

Does Kogan.com Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Kogan.com insiders own about AU$669m worth of shares (which is 29% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Kogan.com Insiders?

Insiders haven't bought Kogan.com stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But since Kogan.com is profitable and growing, we're not too worried by this. 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. You'd be interested to know, that we found 3 warning signs for Kogan.com and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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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