We'd be surprised if Kaiser Aluminum Corporation (NASDAQ:KALU) shareholders haven't noticed that an insider, Raymond Parkinson, recently sold US$152k worth of stock at US$109 per share. That sale was 12% of their holding, so it does make us raise an eyebrow.
Kaiser Aluminum Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Director, Brett Wilcox, for US$434k worth of shares, at about US$108 per share. That means that an insider was selling shares at around the current price of US$107. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Over the last year, we note insiders sold 8600 shares worth US$889k. Kaiser Aluminum insiders didn't buy any shares over the last year. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Kaiser Aluminum insiders own about US$40m worth of shares. That equates to 2.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Kaiser Aluminum Insider Transactions Indicate?
Insiders haven't bought Kaiser Aluminum stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Kaiser Aluminum is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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.
But note: Kaiser Aluminum may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.