Insiders at Kilroy Realty Corporation (NYSE:KRC) sold US$2.3m worth of stock, possibly indicating weakness in the future

By
Simply Wall St
Published
October 17, 2021
NYSE:KRC
Source: Shutterstock

Over the past year, many Kilroy Realty Corporation (NYSE:KRC) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Kilroy Realty

Kilroy Realty Insider Transactions Over The Last Year

The Executive Vice President of Leasing & Business Development, A. Paratte, made the biggest insider sale in the last 12 months. That single transaction was for US$1.6m worth of shares at a price of US$68.14 each. That means that even when the share price was below the current price of US$69.70, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 53% of A. Paratte's stake.

In the last year Kilroy Realty insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:KRC Insider Trading Volume October 18th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Kilroy Realty Boast High 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. We usually like to see fairly high levels of insider ownership. Kilroy Realty insiders own 1.7% of the company, currently worth about US$140m based on the recent share price. 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 Does This Data Suggest About Kilroy Realty Insiders?

The fact that there have been no Kilroy Realty insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Kilroy Realty, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Kilroy Realty (2 are potentially serious!) and we strongly recommend you look at these before investing.

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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.