Investors who take an interest in KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) should definitely note that the Senior VP & CFO, Thomas McCaffrey, recently paid US$5.25 per share to buy US$394k worth of the stock. Although the purchase only increased their holding by 9.4%, it is still a solid purchase in our view.
KLX Energy Services Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chairman Amin Khoury for US$1.2m worth of shares, at about US$12.00 per share. That means that an insider was happy to buy shares at above the current price of US$5.98. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While KLX Energy Services Holdings insiders bought shares last year, they didn't sell. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
KLX Energy Services Holdings 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 KLX Energy Services Holdings
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. KLX Energy Services Holdings insiders own about US$16m worth of shares. That equates to 11% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The KLX Energy Services Holdings Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest KLX Energy Services Holdings insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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