Jack Hockema Is The Executive Chairman of Kaiser Aluminum Corporation (NASDAQ:KALU) And They Just Sold 43% Of Their Shares

We wouldn't blame Kaiser Aluminum Corporation (NASDAQ:KALU) shareholders if they were a little worried about the fact that Jack Hockema, the Executive Chairman recently netted about US$1.4m selling shares at an average price of US$120. That's a big disposal, and it decreased their holding size by 43%, which is notable but not too bad.

See our latest analysis for Kaiser Aluminum

Kaiser Aluminum Insider Transactions Over The Last Year

Notably, that recent sale by Jack Hockema is the biggest insider sale of Kaiser Aluminum shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$115. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last year Kaiser Aluminum insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Kaiser Aluminum

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. Insiders own 1.8% of Kaiser Aluminum shares, worth about US$33m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Kaiser Aluminum Tell Us?

Insiders sold Kaiser Aluminum shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. 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. To that end, you should learn about the 6 warning signs we've spotted with Kaiser Aluminum (including 1 which makes us a bit uncomfortable).

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, but not derivative transactions.

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