Independent Chairman of Kemper Picks Up 55% More Stock

Investors who take an interest in Kemper Corporation (NYSE:KMPR) should definitely note that the Independent Chairman, Gerald Laderman, recently paid US$61.01 per share to buy US$305k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 55%.

See our latest analysis for Kemper

The Last 12 Months Of Insider Transactions At Kemper

Over the last year, we can see that the biggest insider purchase was by Independent Director Stuart Parker for US$414k worth of shares, at about US$41.40 per share. Even though the purchase was made at a significantly lower price than the recent price (US$60.75), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid US$1.0m for 21.83k shares. On the other hand they divested 1.50k shares, for US$69k. Overall, Kemper insiders were net buyers during the last year. The average buy price was around US$46.81. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Kemper is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Kemper

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. Kemper insiders own 4.6% of the company, currently worth about US$181m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Kemper Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Kemper. One for the watchlist, at least! While we like knowing 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Kemper.

Of course Kemper 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 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.