Whilst it may not be a huge deal, we thought it was good to see that the Kindred Group plc (STO:KIND SDB) Chief Technology Officer, Marcus Smedman, recently bought kr103k worth of stock, for kr103 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Kindred Group Insider Transactions Over The Last Year
The insider, Britt Boeskov, made the biggest insider sale in the last 12 months. That single transaction was for kr3.6m worth of shares at a price of kr144 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of kr104. So it may not tell us anything about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid kr201k for 1.91k shares. On the other hand they divested 58.99k shares, for kr8.4m. Over the last year we saw more insider selling of Kindred Group shares, than buying. 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!
I will like Kindred 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.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Kindred Group insiders own 4.0% of the company, currently worth about kr937m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Kindred Group Insiders?
It is good to see recent purchasing. However, the longer term transactions are not so encouraging. The recent buying by some insiders , along with high insider ownership, suggest that Kindred Group insiders are fairly aligned, and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kindred Group. Be aware that Kindred Group is showing 3 warning signs in our investment analysis, and 1 of those is a bit unpleasant...
But note: Kindred Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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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.