Have Kraton Corporation (NYSE:KRA) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
November 27, 2020

We'd be surprised if Kraton Corporation (NYSE:KRA) shareholders haven't noticed that the Senior VP & Chemical Segment President, Marcello Boldrini, recently sold US$150k worth of stock at US$30.08 per share. That sale was 15% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Kraton

Kraton Insider Transactions Over The Last Year

Notably, that recent sale by Marcello Boldrini is the biggest insider sale of Kraton 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$29.18. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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.

Insiders in Kraton didn't buy any shares in the last year. 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!

NYSE:KRA Insider Trading Volume November 27th 2020

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

Does Kraton Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Kraton insiders own about US$24m worth of shares. That equates to 2.6% of the company. 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 Kraton Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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 that end, you should learn about the 3 warning signs we've spotted with Kraton (including 1 which is potentially serious).

But note: Kraton may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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This article by Simply Wall St is general in nature. 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.
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