CEO, President & Director of Kaiser Aluminum Picks Up 5.6% More Stock

Investors who take an interest in Kaiser Aluminum Corporation (NASDAQ:KALU) should definitely note that the CEO, President & Director, Keith Harvey, recently paid US$77.23 per share to buy US$200k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.6%.

See our latest analysis for Kaiser Aluminum

The Last 12 Months Of Insider Transactions At Kaiser Aluminum

Over the last year, we can see that the biggest insider sale was by the Senior Vice President of Advanced Engineering & Innovation, Raymond Parkinson, for US$377k worth of shares, at about US$79.75 per share. So what is clear is that an insider saw fit to sell at around the current price of US$78.69. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Raymond Parkinson was the only individual insider to sell shares in the last twelve months.

Raymond Parkinson divested 7.98k shares over the last 12 months at an average price of US$88.22. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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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 1.7% of Kaiser Aluminum shares, worth about US$21m. 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 Do The Kaiser Aluminum Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Kaiser Aluminum, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Kaiser Aluminum is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. Be aware that Kaiser Aluminum is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

Of course Kaiser Aluminum 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com