Stock Analysis

Insiders who sold US$29m worth of Kape Technologies PLC (LON:KAPE were amply compensated

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AIM:KAPE
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Even though Kape Technologies PLC (LON:KAPE) stock gained 7.1% last week, insiders who sold US$29m worth of stock over the past year are probably better off. Selling at an average price of US$3.85, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

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.

View our latest analysis for Kape Technologies

The Last 12 Months Of Insider Transactions At Kape Technologies

The insider, Ran Greenberg, made the biggest insider sale in the last 12 months. That single transaction was for UK£11m worth of shares at a price of UK£3.80 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is UK£2.70. So it may not tell us anything about how insiders feel about the current share price.

In the last year Kape Technologies insiders didn't buy any company stock. 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!

insider-trading-volume
AIM:KAPE Insider Trading Volume October 4th 2022

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 Kape Technologies

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Kape Technologies insiders own 47% of the company, currently worth about UK£524m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Kape Technologies Tell Us?

It doesn't really mean much that no insider has traded Kape Technologies shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Kape Technologies insider transactions don't fill us with confidence. 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 2 warning signs for Kape Technologies that deserve your attention before buying any shares.

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, but not derivative transactions.

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About AIM:KAPE

Kape Technologies

Kape Technologies PLC, together with its subsidiaries, develops and distributes digital products in the online security space.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation5
Future Growth2
Past Performance3
Financial Health3
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Undervalued with acceptable track record.