Insider Spends NZ$179k Buying More Shares In KMD Brands

Potential KMD Brands Limited (NZSE:KMD) shareholders may wish to note that the Independent Non-Executive Chairman, David Kirk, recently bought NZ$179k worth of stock, paying NZ$0.87 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 21%.

Check out our latest analysis for KMD Brands

The Last 12 Months Of Insider Transactions At KMD Brands

In fact, the recent purchase by David Kirk was the biggest purchase of KMD Brands shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being NZ$0.79). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. David Kirk was the only individual insider to buy shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

KMD Brands is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does KMD Brands Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, KMD Brands insiders have about 0.3% of the stock, worth approximately NZ$1.9m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

What Might The Insider Transactions At KMD Brands Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that KMD Brands insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing KMD Brands. For example - KMD Brands has 1 warning sign we think you should be aware of.

Of course KMD Brands may not be the best stock to buy. So you may wish to see this free collection of high quality 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.