Don't Ignore The Insider Selling In World Kinect

Anyone interested in World Kinect Corporation (NYSE:WKC) should probably be aware that the Independent Director, Kanwaljit Bakshi, recently divested US$263k worth of shares in the company, at an average price of US$24.07 each. The eyebrow raising move amounted to a reduction of 21% in their holding.

See our latest analysis for World Kinect

The Last 12 Months Of Insider Transactions At World Kinect

The Independent Chairman Emeritus, Paul Stebbins, made the biggest insider sale in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$24.65 each. That means that even when the share price was slightly below the current price of US$24.75, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 29% of Paul Stebbins's stake.

World Kinect insiders didn't buy any shares 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!

I will like World Kinect better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of World Kinect

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.8% of World Kinect shares, worth about US$41m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About World Kinect Insiders?

Insiders haven't bought World Kinect stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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. Every company has risks, and we've spotted 3 warning signs for World Kinect 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 of direct interests only, but not derivative transactions or indirect interests.

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