How Many Kala Pharmaceuticals, Inc. (NASDAQ:KALA) Shares Did Insiders Buy, In The Last Year?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Kala Pharmaceuticals, Inc. (NASDAQ:KALA).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

Check out our latest analysis for Kala Pharmaceuticals

Kala Pharmaceuticals Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chief Operating Officer Todd Bazemore bought US$58k worth of shares at a price of US$5.75 per share. We do like to see buying, but this purchase was made at well below the current price of US$7.43. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Todd Bazemore purchased 10.04k shares over the year. The average price per share was US$5.76. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Kala Pharmaceuticals insiders own 0.7% of the company, worth about US$2.7m. We prefer to see high levels of insider ownership.

So What Do The Kala Pharmaceuticals Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Kala Pharmaceuticals shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Kala Pharmaceuticals stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kala Pharmaceuticals. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Kala Pharmaceuticals.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, 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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