Trade Alert: Chief Sales Officer Of Kinaxis Claire Rychlewski Has Sold Stock

Anyone interested in Kinaxis Inc. (TSE:KXS) should probably be aware that the Chief Sales Officer, Claire Rychlewski, recently divested CA$668k worth of shares in the company, at an average price of CA$152 each. Equally important, that sale actually reduced their holding by a full 69% which hardly makes us feel bullish about the stock.

Check out our latest analysis for Kinaxis

Kinaxis Insider Transactions Over The Last Year

The CEO, President & Director, John Sicard, made the biggest insider sale in the last 12 months. That single transaction was for CA$4.4m worth of shares at a price of CA$152 each. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$155. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 9.4% of John Sicard's holding.

All up, insiders sold more shares in Kinaxis than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.3% of Kinaxis shares, worth about CA$55m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Kinaxis Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Kinaxis makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Kinaxis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.