- Specialty Stores
Kits Eyecare Ltd. (TSE:KITS) insiders are undoubtedly delighted they bought last year with gains to date at CA$1.1m
Insiders who bought Kits Eyecare Ltd. (TSE:KITS) stock lover the last 12 months are probably not as affected by last week’s 16% loss. Even after accounting for the recent loss, the CA$1.9m worth of stock purchased by them is now worth CA$2.9m or in other words, their investment continues to give good returns.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Kits Eyecare
Kits Eyecare Insider Transactions Over The Last Year
The Co-Founder Roger Hardy made the biggest insider purchase in the last 12 months. That single transaction was for CA$620k worth of shares at a price of CA$2.60 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$3.65. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Roger Hardy bought 807.00k shares over the last 12 months at an average price of CA$2.34. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Kits Eyecare is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Kits Eyecare insiders own 44% of the company, currently worth about CA$50m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Kits Eyecare Insiders?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Kits Eyecare insiders think the business has merit. 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. At Simply Wall St, we found 1 warning sign for Kits Eyecare that deserve your attention before buying any shares.
But note: Kits Eyecare may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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. 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.
Kits Eyecare Ltd. operates a digital eyecare platform in the United States and Canada.
Excellent balance sheet and slightly overvalued.