Independent Non-Executive Chairman of KMD Brands Picks Up 54% More Stock

Potential KMD Brands Limited (NZSE:KMD) shareholders may wish to note that the Independent Non-Executive Chairman, David Kirk, recently bought NZ$210k worth of stock, paying NZ$0.30 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 54%.

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The Last 12 Months Of Insider Transactions At KMD Brands

Notably, that recent purchase by David Kirk is the biggest insider purchase of KMD Brands shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is NZ$0.30. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the KMD Brands insiders decided to buy shares at close to current prices.

KMD Brands insiders may have bought shares in the last year, but they didn't sell any. 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!

See our latest analysis for KMD Brands

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of KMD Brands

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. We usually like to see fairly high levels of insider ownership. Our data suggests KMD Brands insiders own 1.2% of the company, worth about NZ$2.5m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About KMD Brands Insiders?

It is good to see recent purchasing. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that KMD Brands insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that KMD Brands has 1 warning sign and it would be unwise to ignore it.

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.