Trade Alert: The Independent Chairman of the Board Of Katapult Holdings, Inc. (NASDAQ:KPLT), Brian Hirsch, Has Just Spent US$226k Buying 176% More Shares
Investors who take an interest in Katapult Holdings, Inc. (NASDAQ:KPLT) should definitely note that the Independent Chairman of the Board, Brian Hirsch, recently paid US$1.50 per share to buy US$226k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 176%.
Check out our latest analysis for Katapult Holdings
Katapult Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by Brian Hirsch was the biggest purchase of Katapult Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$1.62. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders purchased 470.22k shares for US$1.1m. But they sold 38.50k shares for US$147k. In the last twelve months there was more buying than selling by Katapult Holdings insiders. The average buy price was around US$2.42. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Katapult Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Katapult Holdings Boast High Insider Ownership?
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. Our data indicates that Katapult Holdings insiders own about US$8.1m worth of shares (which is 5.1% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
So What Do The Katapult Holdings Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Katapult Holdings insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Katapult Holdings is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...
But note: Katapult Holdings 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
