Investors who take an interest in Eastman Kodak Company (NYSE:KODK) should definitely note that the Executive Chairman & CEO, James Continenza, recently paid US$2.45 per share to buy US$130k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 53%.
Eastman Kodak Insider Transactions Over The Last Year
In fact, the recent purchase by Executive Chairman & CEO James Continenza was not their only acquisition of Eastman Kodak shares this year. Earlier in the year, they paid US$2.12 per share in a US$205k purchase. So it's clear an insider wanted to buy, at around the current price, which is US$2.51. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Eastman Kodak share holders is that insiders were buying at near the current price.
While Eastman Kodak insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Eastman Kodak is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Eastman Kodak
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. Our data indicates that Eastman Kodak insiders own about US$8.3m worth of shares (which is 7.7% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Eastman Kodak Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Eastman Kodak insiders are expecting a bright future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
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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