Key Tronic Insider Confidence Rewarded, Stock Hits US$34m Market Cap

Key Tronic Corporation (NASDAQ:KTCC) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 10% resulting in a US$3.2m addition to the company’s market value. As a result, their original purchase of US$248.9k worth of stock is now worth US$314.6k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Key Tronic Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Director Craig Gates bought US$108k worth of shares at a price of US$2.41 per share. Even though the purchase was made at a significantly lower price than the recent price (US$3.21), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Key Tronic insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Key Tronic

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Key Tronic Have Bought Stock Recently

There was some insider buying at Key Tronic over the last quarter. Executive VP of Administration Anthony Voorhees bought US$29k worth of shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

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 indicates that Key Tronic insiders own about US$2.7m worth of shares (which is 7.9% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The Key Tronic Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Key Tronic insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Key Tronic. For example, Key Tronic has 3 warning signs (and 2 which are concerning) we think you should know about.

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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.