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Have KB Home (NYSE:KBH) Insiders Been Selling Their Stock?

Simply Wall St

Anyone interested in KB Home (NYSE:KBH) should probably be aware that the Executive VP & CFO, Jeff Kaminski, recently divested US$495k worth of shares in the company, at an average price of US$36.26 each. The eyebrow raising move amounted to a reduction of 12% in their holding.

Check out our latest analysis for KB Home

KB Home Insider Transactions Over The Last Year

Notably, that recent sale by Jeff Kaminski is the biggest insider sale of KB Home shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$34.17. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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).

In the last twelve months insiders netted US$584k for 16948 shares sold. In the last year KB Home insiders didn't buy any company stock. 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!

NYSE:KBH Recent Insider Trading, November 7th 2019

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of KB Home

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. We usually like to see fairly high levels of insider ownership. It appears that KB Home insiders own 2.2% of the company, worth about US$65m. 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 Does This Data Suggest About KB Home Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since KB Home is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We'd 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.

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.

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.