Yahoo Finance Kits Eyecare Ltd. (TSE:KITS) insiders placed bullish bets worth CA$2.3m in the last 12 months
Over the last year, a good number of insiders have significantly increased their holdings in Kits Eyecare Ltd. (TSE:KITS). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Kits Eyecare
The Last 12 Months Of Insider Transactions At Kits Eyecare
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Roger Hardy bought CA$1.7m worth of shares at a price of CA$3.72 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$2.07). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Roger Hardy was both the biggest buyer and the biggest seller.
Happily, we note that in the last year insiders paid CA$2.3m for 691.35k shares. But they sold 450.00k shares for CA$1.7m. In the last twelve months there was more buying than selling by Kits Eyecare insiders. Their average price was about CA$3.33. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and 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!
Kits Eyecare 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.
Insiders at Kits Eyecare Have Bought Stock Recently
Over the last quarter, Kits Eyecare insiders have spent a meaningful amount on shares. Co-Founder Roger Hardy spent CA$620k on stock, and there wasn't any selling. That shows some optimism about the company's future.
Does Kits Eyecare Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Kits Eyecare insiders own 52% of the company, currently worth about CA$34m based on the recent share price. 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 Kits Eyecare Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Kits Eyecare. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Kits Eyecare has 2 warning signs we think you should be aware of.
Of course Kits Eyecare may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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.
