Some Kelly Services, Inc. (NASDAQ:KELY.A) shareholders may be a little concerned to see that the Director, Carol Adderley, recently sold a substantial US$524k worth of stock at a price of US$20.85 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.2%.
The Last 12 Months Of Insider Transactions At Kelly Services
Notably, that recent sale by Carol Adderley is the biggest insider sale of Kelly Services shares that we've seen in the last year. That means that even when the share price was below the current price of US$21.29, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 7.2% of Carol Adderley's stake.
In total, Kelly Services insiders sold more than they bought over the last year. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Kelly Services insiders own about US$57m worth of shares. That equates to 6.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Kelly Services Tell Us?
Insiders sold Kelly Services shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Kelly Services and understanding it should be part of your investment process.
Of course Kelly Services 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, but not derivative transactions.
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