The Independent Director of Kennedy-Wilson Holdings, Inc. (NYSE:KW), Stanley Zax, Just Bought 8.4% More Shares
Those following along with Kennedy-Wilson Holdings, Inc. (NYSE:KW) will no doubt be intrigued by the recent purchase of shares by Stanley Zax, Independent Director of the company, who spent a stonking US$635k on stock at an average price of US$18.15. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 8.4%.
See our latest analysis for Kennedy-Wilson Holdings
The Last 12 Months Of Insider Transactions At Kennedy-Wilson Holdings
Notably, that recent purchase by Stanley Zax is the biggest insider purchase of Kennedy-Wilson Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$18.12. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Kennedy-Wilson Holdings insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$20.96. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Kennedy-Wilson Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Kennedy-Wilson Holdings insiders own 15% of the company, worth about US$367m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Kennedy-Wilson Holdings Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Kennedy-Wilson Holdings. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Kennedy-Wilson Holdings (2 are a bit unpleasant!) that we believe deserve your full attention.
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.
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