Insiders Could Have Profited By Holding onto Kitwave Group Shares Despite 10% Drop

Kitwave Group plc's (LON:KITW) value has fallen 10% in the last week, but insiders who sold UK£4.1m worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of UK£3.03 is still lower than the current share price.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Kitwave Group

Kitwave Group Insider Transactions Over The Last Year

The CFO & Director, David Brind, made the biggest insider sale in the last 12 months. That single transaction was for UK£1.6m worth of shares at a price of UK£3.25 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (UK£2.57). So it may not shed much light on insider confidence at current levels.

Insiders in Kitwave Group didn't buy any shares in the last year. 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!

I will like Kitwave Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insiders At Kitwave Group Have Sold Stock Recently

The last quarter saw substantial insider selling of Kitwave Group shares. In total, insiders dumped UK£3.3m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Kitwave Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Kitwave Group insiders own 18% of the company, worth about UK£33m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Kitwave Group Insiders?

Insiders haven't bought Kitwave Group stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Kitwave Group makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. Case in point: We've spotted 3 warning signs for Kitwave Group you should be aware of.

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.