Investors who take an interest in Kirkland's, Inc. (NASDAQ:KIRK) should definitely note that the President, Steve Woodward, recently paid US$2.37 per share to buy US$111k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 45%.
Kirkland's Insider Transactions Over The Last Year
Notably, that recent purchase by Steve Woodward is the biggest insider purchase of Kirkland's shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$2.56. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 Kirkland's share holders is that insiders were buying at near the current price.
Kirkland's insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$2.01. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Kirkland's is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Kirkland's Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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 suggests Kirkland's insiders own 4.6% of the company, worth about US$1.6m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Kirkland's Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Kirkland's insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 4 warning signs for Kirkland's you should be aware of, and 2 of these are a bit concerning.
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.
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. 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.
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