Insider Spends AU$86k Buying More Shares In Kip McGrath Education Centres
Whilst it may not be a huge deal, we thought it was good to see that the Kip McGrath Education Centres Limited (ASX:KME) MD, CEO & Executive Director, Storm McGrath, recently bought AU$86k worth of stock, for AU$0.43 per share. Although the purchase is not a big one, increasing their shareholding by only 4.4%, it can be interpreted as a good sign.
See our latest analysis for Kip McGrath Education Centres
The Last 12 Months Of Insider Transactions At Kip McGrath Education Centres
In fact, the recent purchase by Storm McGrath was the biggest purchase of Kip McGrath Education Centres shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of AU$0.47. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Kip McGrath Education Centres share holders is that insiders were buying at near the current price.
Kip McGrath Education Centres insiders may have bought shares in the last year, but they didn't sell any. 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!
Kip McGrath Education Centres 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.
Does Kip McGrath Education Centres Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Kip McGrath Education Centres insiders own 29% of the company, worth about AU$7.8m. 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 Kip McGrath Education Centres Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Kip McGrath Education Centres insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kip McGrath Education Centres. In terms of investment risks, we've identified 2 warning signs with Kip McGrath Education Centres and understanding these should be part of your investment process.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
