We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Keurig Dr Pepper Inc. (NYSE:KDP).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Keurig Dr Pepper Insider Transactions Over The Last Year
Maria Sceppaguercio-Gever made the biggest insider purchase in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$23.97 each. So it’s clear an insider wanted to buy, at around the current price. 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. Nonetheless, we consider it positive if insiders want to buy at around the current share price.
Happily, we note that in the last year insiders bought 336.78k shares for a total of US$8.2m. Overall, Keurig Dr Pepper insiders were net buyers last year. Their average price was about US$24.39. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of US$26.00. You can see a visual depiction of insider transactions (by 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!
Keurig Dr Pepper is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Keurig Dr Pepper Have Bought Stock Recently
It’s good to see that Keurig Dr Pepper insiders have made notable investments in the company’s shares. In total, insiders bought US$896k worth of shares in that time, and we didn’t record any sales whatsoever. This makes one think the business has some good points.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It’s great to see that Keurig Dr Pepper insiders own 0.5% of the company, worth about US$181m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Keurig Dr Pepper Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Keurig Dr Pepper insiders are well aligned, and quite possibly think the share price is too low. Nice! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Keurig Dr Pepper.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.