U.S. markets open in 19 minutes
  • S&P Futures

    3,637.00
    +35.50 (+0.99%)
     
  • Dow Futures

    29,115.00
    +314.00 (+1.09%)
     
  • Nasdaq Futures

    11,107.75
    +72.25 (+0.65%)
     
  • Russell 2000 Futures

    1,693.70
    +23.90 (+1.43%)
     
  • Crude Oil

    83.24
    +3.75 (+4.72%)
     
  • Gold

    1,674.70
    +2.70 (+0.16%)
     
  • Silver

    19.76
    +0.72 (+3.79%)
     
  • EUR/USD

    0.9770
    -0.0031 (-0.31%)
     
  • 10-Yr Bond

    3.7020
    -0.1020 (-2.68%)
     
  • Vix

    31.37
    -0.47 (-1.48%)
     
  • GBP/USD

    1.1226
    +0.0060 (+0.54%)
     
  • USD/JPY

    144.9240
    +0.1950 (+0.13%)
     
  • BTC-USD

    19,277.67
    +124.12 (+0.65%)
     
  • CMC Crypto 200

    438.90
    -4.52 (-1.02%)
     
  • FTSE 100

    6,883.71
    -10.10 (-0.15%)
     
  • Nikkei 225

    26,215.79
    +278.58 (+1.07%)
     

The CFO, COO & Executive Director of Kogan.com Ltd (ASX:KGN), David Shafer, Just Bought 3.0% More Shares

·3 min read

Investors who take an interest in Kogan.com Ltd (ASX:KGN) should definitely note that the CFO, COO & Executive Director, David Shafer, recently paid AU$3.38 per share to buy AU$507k worth of the stock. Although the purchase only increased their holding by 3.0%, it is still a solid purchase in our view.

Check out our latest analysis for Kogan.com

Kogan.com Insider Transactions Over The Last Year

Notably, that recent purchase by David Shafer is the biggest insider purchase of Kogan.com shares that we've seen in the last year. That implies that an insider found the current price of AU$3.55 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 Kogan.com insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was David Shafer.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

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.

Does Kogan.com Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. Kogan.com insiders own about AU$79m worth of shares. That equates to 21% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Kogan.com Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Kogan.com shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Kogan.com you should be aware of.

But note: Kogan.com 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.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here