Even if it's not a huge purchase, we think it was good to see that David Cotterell, the Non Executive Director of Kape Technologies Plc (LON:KAPE) recently shelled out UK£58k to buy stock, at UK£1.11 per share. Even though that isn't a massive buy, it did increase their holding by 59%, which is a arguably a good sign.
The Last 12 Months Of Insider Transactions At Kape Technologies
Notably, that recent purchase by David Cotterell is the biggest insider purchase of Kape Technologies shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is UK£1.37. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Kape Technologies share holders is that insiders were buying at near the current price.
Kape Technologies insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Kape Technologies 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 Kape Technologies
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Kape Technologies insiders own about UK£143m worth of shares (which is 68% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Kape Technologies Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Kape Technologies insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kape Technologies. Every company has risks, and we've spotted 2 warning signs for Kape Technologies you should know about.
But note: Kape Technologies 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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