Insider Spends US$1.3m Buying More Shares In Kennedy-Wilson Holdings

Those following along with Kennedy-Wilson Holdings, Inc. (NYSE:KW) will no doubt be intrigued by the recent purchase of shares by William McMorrow, Chairman & CEO of the company, who spent a stonking US$1.3m on stock at an average price of US$6.36. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 1.8%.

We've discovered 2 warning signs about Kennedy-Wilson Holdings. View them for free.

Kennedy-Wilson Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by William McMorrow was the biggest purchase of Kennedy-Wilson Holdings shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$6.68 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

Over the last year, we can see that insiders have bought 241.00k shares worth US$1.6m. On the other hand they divested 30.00k shares, for US$259k. In the last twelve months there was more buying than selling by Kennedy-Wilson Holdings insiders. 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!

Check out our latest analysis for Kennedy-Wilson Holdings

Kennedy-Wilson Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Kennedy-Wilson Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Kennedy-Wilson Holdings insiders own 12% of the company, worth about US$115m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Kennedy-Wilson Holdings Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Kennedy-Wilson Holdings. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Kennedy-Wilson Holdings that deserve your attention before buying any shares.

But note: Kennedy-Wilson Holdings 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 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.