Yahoo Finance Bullish insiders bet US$3.1m on Kennedy-Wilson Holdings, Inc. (NYSE:KW)
Over the last year, a good number of insiders have significantly increased their holdings in Kennedy-Wilson Holdings, Inc. (NYSE:KW). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Kennedy-Wilson Holdings
Kennedy-Wilson Holdings Insider Transactions Over The Last Year
The Chairman & CEO William McMorrow made the biggest insider purchase in the last 12 months. That single transaction was for US$2.1m worth of shares at a price of US$21.10 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$20.88). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
In the last twelve months Kennedy-Wilson Holdings insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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. Specifically, Independent Non-Executive Director Richard Boucher bought US$563k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does Kennedy-Wilson Holdings Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Kennedy-Wilson Holdings insiders own about US$426m worth of shares (which is 15% of the company). 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 Kennedy-Wilson Holdings Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Kennedy-Wilson Holdings. Nice! 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. Be aware that Kennedy-Wilson Holdings is showing 4 warning signs in our investment analysis, and 2 of those are potentially serious...
Of course Kennedy-Wilson Holdings 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.