Have Insiders Sold K-Bro Linen Shares Recently?

We'd be surprised if K-Bro Linen Inc. (TSE:KBL) shareholders haven't noticed that the President, Linda McCurdy, recently sold CA$497k worth of stock at CA$39.78 per share. However, the silver lining is that the sale only reduced their total holding by 5.2%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for K-Bro Linen

The Last 12 Months Of Insider Transactions At K-Bro Linen

Notably, that recent sale by President Linda McCurdy was not the only time they sold K-Bro Linen shares this year. They previously made an even bigger sale of -CA$1.0m worth of shares at a price of CA$34.01 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$38.06. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 12% of Linda McCurdy's holding.

K-Bro Linen insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like K-Bro Linen better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that K-Bro Linen insiders own 5.0% of the company, worth about CA$20m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At K-Bro Linen Tell Us?

Insiders sold K-Bro Linen shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, K-Bro Linen makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for K-Bro Linen you should know about.

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 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.