Bullish Kontoor Brands, Inc. (NYSE:KTB) investors are yet to receive a pay off on their US$532k bet
The recent 5.0% drop in Kontoor Brands, Inc.'s (NYSE:KTB) stock could come as a blow to insiders who purchased US$532k worth of stock at an average buy price of US$53.24 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$414k which is not ideal.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Kontoor Brands
The Last 12 Months Of Insider Transactions At Kontoor Brands
In the last twelve months, the biggest single purchase by an insider was when President Scott Baxter bought US$532k worth of shares at a price of US$53.24 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$41.35). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Scott Baxter was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Kontoor Brands is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Kontoor Brands Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.1% of Kontoor Brands shares, worth about US$25m. 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 Does This Data Suggest About Kontoor Brands Insiders?
It doesn't really mean much that no insider has traded Kontoor Brands shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Kontoor Brands insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Kontoor Brands has 3 warning signs and it would be unwise to ignore them.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
