Even though KLA Corporation's (NASDAQ:KLAC) stock is down 8.2% this week, insiders who bought lately made a US$21k profit
Insiders who bought KLA Corporation (NASDAQ:KLAC) in the last 12 months may probably not pay attention to the stock's recent 8.2% drop. Even after accounting for the recent loss, the US$113k worth of stock purchased by them is now worth US$134k or in other words, their investment continues to give good returns.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for KLA
KLA Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Gary Moore bought US$113k worth of shares at a price of US$301 per share. We do like to see buying, but this purchase was made at well below the current price of US$356. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
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!
KLA is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of KLA
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that KLA insiders own 0.1% of the company, worth about US$71m. 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 KLA Insider Transactions Indicate?
It doesn't really mean much that no insider has traded KLA shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in KLA and we see no evidence to suggest they are worried about the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for KLA you should be aware of.
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.
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.
