Some Korn Ferry (NYSE:KFY) shareholders may be a little concerned to see that the Executive VP, Robert Rozek, recently sold a substantial US$758k worth of stock at a price of US$75.75 per share. However, that sale only accounted for 6.7% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At Korn Ferry
Over the last year, we can see that the biggest insider sale was by the President, Gary Burnison, for US$8.1m worth of shares, at about US$64.82 per share. That means that even when the share price was below the current price of US$73.16, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. It is worth noting that this sale was only 25% of Gary Burnison's holding. Notably Gary Burnison was also the biggest buyer, having purchased US$28k worth of shares.
Over the last year we saw more insider selling of Korn Ferry shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Korn Ferry better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Korn Ferry Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.3% of Korn Ferry shares, worth about US$53m. 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 Do The Korn Ferry Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. But since Korn Ferry is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Korn Ferry you should know about.
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, 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.
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