Insiders Who Sold US$601k Of Kewaunee Scientific Made The Right Call

While it’s been a great week for Kewaunee Scientific Corporation (NASDAQ:KEQU) shareholders after stock gained 13%, they should consider it with a grain of salt. Even though stock prices were relatively low, insiders elected to sell US$601k worth of stock in the last year, which could indicate some expected downturn.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Kewaunee Scientific

The Last 12 Months Of Insider Transactions At Kewaunee Scientific

The Independent Director John Russell made the biggest insider purchase in the last 12 months. That single transaction was for US$172k worth of shares at a price of US$23.75 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$36.78. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In total, Kewaunee Scientific insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and 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!

I will like Kewaunee Scientific better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Kewaunee Scientific

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Kewaunee Scientific insiders own 26% of the company, worth about US$24m. 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 Kewaunee Scientific Insider Transactions Indicate?

The fact that there have been no Kewaunee Scientific insider transactions recently certainly doesn't bother us. Our analysis of Kewaunee Scientific insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 1 warning sign for Kewaunee Scientific you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

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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.