Pleasing Signs As A Number Of Insiders Buy Kits Eyecare Stock

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Kits Eyecare Ltd.'s (TSE:KITS) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Kits Eyecare

The Last 12 Months Of Insider Transactions At Kits Eyecare

Over the last year, we can see that the biggest insider purchase was by Co-Founder Roger Hardy for CA$275k worth of shares, at about CA$5.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$5.70. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Kits Eyecare insiders were buying shares, but not selling. 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!

Kits Eyecare is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Kits Eyecare Have Bought Stock Recently

We saw some Kits Eyecare insider buying shares in the last three months. C.M.O. Robert Long bought CA$54k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership Of Kits Eyecare

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. Kits Eyecare insiders own about CA$73m worth of shares (which is 41% of the company). 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 Do The Kits Eyecare Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Kits Eyecare. Nice! Of course, the future is what matters most. So if you are interested in Kits Eyecare, you should check out this free report on analyst forecasts for the company.

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 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.