Have Insiders Been Selling Kinaxis Inc. (TSE:KXS) Shares?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Kinaxis Inc. (TSE:KXS).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for Kinaxis
Kinaxis Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the CEO, President & Director, John Sicard, for CA$400k worth of shares, at about CA$80.00 per share. So we know that an insider sold shares at around the present share price of CA$77.56. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Notably John Sicard was also the biggest buyer, having purchased CA$923k worth of shares.
Over the last year, we can see that insiders have bought 13755 shares worth CA$923k. But insiders sold 15400 shares worth CA$1.2m. Over the last year we saw more insider selling of Kinaxis shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Kinaxis Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Kinaxis shares. Specifically, insiders ditched US$421k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Does Kinaxis Boast High Insider Ownership?
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 Kinaxis insiders own about CA$7.4m worth of shares (which is 0.4% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Kinaxis Tell Us?
Insiders sold Kinaxis shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. We'd certainly think twice before buying! 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.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
