It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Kewaunee Scientific Corporation's (NASDAQ:KEQU) case, it's fantastic news for shareholders.
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.
Kewaunee Scientific Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Peter Kamin bought US$421k worth of shares at a price of US$14.24 per share. We do like to see buying, but this purchase was made at well below the current price of US$17.20. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Kewaunee Scientific insiders bought shares during the last year, they didn't sell. 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!
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 Of Kewaunee Scientific
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. It appears that Kewaunee Scientific insiders own 24% of the company, worth about US$11m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Kewaunee Scientific Insider Transactions Indicate?
The fact that there have been no Kewaunee Scientific insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Kewaunee Scientific insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kewaunee Scientific. At Simply Wall St, we've found that Kewaunee Scientific has 3 warning signs (2 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
But note: Kewaunee Scientific 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. 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.
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