Don't Ignore The Insider Selling In Kitwave Group

We wouldn't blame Kitwave Group plc (LON:KITW) shareholders if they were a little worried about the fact that John Hope, a company insider, recently netted about UK£635k selling shares at an average price of UK£3.63. Probably the most concerning element of the whole transaction is that the disposal amounted to 56% of their entire holding.

Check out our latest analysis for Kitwave Group

Kitwave Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CFO & Director, David Brind, for UK£1.6m worth of shares, at about UK£3.25 per share. That means that even when the share price was below the current price of UK£3.50, an insider wanted to cash in some shares. 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. We note that the biggest single sale was 54% of David Brind's holding.

Kitwave Group 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Kitwave Group

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Kitwave Group insiders own about UK£45m worth of shares. That equates to 18% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Kitwave Group Insiders?

An insider sold Kitwave Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Kitwave Group is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Kitwave Group has 2 warning signs and it would be unwise to ignore them.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.