Stock Analysis

Kits Eyecare Ltd. (TSE:KITS) insiders are undoubtedly delighted they bought last year with gains to date at CA$1.1m

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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!

TSX:KITS Insider Trading Volume March 17th 2023

Kits Eyecare is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. 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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Find out whether Kits Eyecare is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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