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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 shareholders might well want to know whether insiders have been buying or selling shares in Koppers Holdings Inc. (NYSE:KOP).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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.'
Koppers Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when R. Johnson bought US$1.0m worth of shares at a price of US$20.16 per share. Although we like to see insider buying, we note that this large purchase was at significantly lower prices. The insider buying may not tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 241.00k shares for US$5.7m. But insiders sold 36.60k shares worth US$1.5m. In the last twelve months there was more buying than selling by Koppers Holdings insiders. They paid about US$23.45 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of US$26.93. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Koppers Holdings Have Bought Stock Recently
It's good to see that Koppers Holdings insiders have made notable investments in the company's shares. R. Johnson spent US$510k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.
Insider Ownership of Koppers Holdings
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 4.9% of Koppers Holdings shares, worth about US$27m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Koppers Holdings Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Koppers Holdings we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Koppers Holdings, you should check out this free report on analyst forecasts for the company.
Of course Koppers Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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 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.