We note that the Kearny Financial Corp. (NASDAQ:KRNY) Executive VP & Chief Lending Officer, Patrick Joyce, recently sold US$54k worth of stock for US$8.97 per share. On the bright side, that's just a small sale and only reduced their holding by 5.2%.
Kearny Financial Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director John McGovern bought US$128k worth of shares at a price of US$8.02 per share. That implies that an insider found the current price of US$8.60 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Kearny Financial insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 46.30k shares for US$416k. But they sold 33.32k shares for US$435k. Over the last year we saw more insider selling of Kearny Financial shares, than buying. The average sell price was around US$13.05. It is certainly not great to see that insiders have sold shares in the company. But the selling was at much higher prices than the current share price (US$8.60), so it probably doesn't tell us a lot about the value on offer today. 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!
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Insider Ownership of Kearny Financial
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Kearny Financial insiders own about US$26m worth of shares. That equates to 3.5% of the company. 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 Kearny Financial Insiders?
The recent insider purchases are heartening. But we can't say the same for the transactions over the last 12 months. While recent transactions indicate confidence in Kearny Financial, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. Overall they seem reasonably aligned. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Kearny Financial.
But note: Kearny Financial 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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