Bullish Kingfisher plc (LON:KGF) insiders were rewarded last week as their UK£546k investment inflated to UK£599k
Kingfisher plc (LON:KGF) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 3.2%, resulting in a UK£170m rise in the company's market capitalisation. Put another way, the original UK£546k acquisition is now worth UK£599k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Kingfisher
The Last 12 Months Of Insider Transactions At Kingfisher
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Jeffrey Carr for UK£519k worth of shares, at about UK£2.60 per share. That implies that an insider found the current price of UK£2.85 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Kingfisher insiders decided to buy shares at close to current prices.
Kingfisher 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!
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 Kingfisher
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. From looking at our data, insiders own UK£2.4m worth of Kingfisher stock, about 0.04% of the company. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Kingfisher Tell Us?
It doesn't really mean much that no insider has traded Kingfisher shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Kingfisher stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Kingfisher has 2 warning signs (and 1 which is concerning) we think you should know about.
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. 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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