Insider Buying: Gary Roberts Just Spent US$361k On KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) Shares

Investors who take an interest in KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) should definitely note that insider Gary Roberts recently paid US$1.66 per share to buy US$361k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 52%, potentially signalling some real optimism.

View our latest analysis for KLX Energy Services Holdings

KLX Energy Services Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chairman Amin Khoury bought US$1.2m worth of shares at a price of US$12.00 per share. That means that an insider was happy to buy shares at above the current price of US$1.25. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While KLX Energy Services Holdings insiders bought shares last year, they didn't sell. The average buy price was around US$7.19. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by 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!

KLX Energy Services Holdings 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.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. 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 12% of KLX Energy Services Holdings shares, worth about US$3.5m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About KLX Energy Services Holdings Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on KLX Energy Services Holdings stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing KLX Energy Services Holdings. Case in point: We've spotted 4 warning signs for KLX Energy Services Holdings you should be aware of.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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