We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Kennedy-Wilson Holdings, Inc. (NYSE:KW), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. 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.'
The Last 12 Months Of Insider Transactions At Kennedy-Wilson Holdings
Trevor Bowen made the biggest insider purchase in the last 12 months. That single transaction was for US$283k worth of shares at a price of US$20.93 each. That implies that an insider found the current price of US$21.73 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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. Happily, the Kennedy-Wilson Holdings insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders bought 20600 shares for a total of US$432k. While Kennedy-Wilson Holdings insiders bought shares last year, they didn't sell. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Kennedy-Wilson Holdings Have Bought Stock Recently
It's good to see that Kennedy-Wilson Holdings insiders have made notable investments in the company's shares. Overall, 2 insiders shelled out US$432k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership of Kennedy-Wilson Holdings
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. It's great to see that Kennedy-Wilson Holdings insiders own 13% of the company, worth about US$406m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Kennedy-Wilson Holdings Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Kennedy-Wilson Holdings. Nice! Of course, the future is what matters most. So if you are interested in Kennedy-Wilson Holdings, you should check out this free report on analyst forecasts for the company.
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.
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If you spot an error that warrants correction, please contact the editor at email@example.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.