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Bullish Krispy Kreme, Inc. (NASDAQ:DNUT) investors are yet to receive a pay off on their US$7.3m bet

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The recent price decline of 3.5% in Krispy Kreme, Inc.'s (NASDAQ:DNUT) stock may have disappointed insiders who bought US$7.3m worth of shares at an average price of US$15.17 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$6.9m, which is not what they expected.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Krispy Kreme

The Last 12 Months Of Insider Transactions At Krispy Kreme

Over the last year, we can see that the biggest insider purchase was by Chairman of the Board Olivier C. Goudet for US$4.7m worth of shares, at about US$16.02 per share. That means that an insider was happy to buy shares at above the current price of US$14.30. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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.

Krispy Kreme insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

Krispy Kreme is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Krispy Kreme Insiders Bought Stock Recently

Over the last quarter, Krispy Kreme insiders have spent a meaningful amount on shares. Specifically, CEO, President & Director Michael Tattersfield bought US$271k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Does Krispy Kreme Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Krispy Kreme insiders own about US$156m worth of shares (which is 6.5% of the company). 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 Krispy Kreme Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Krispy Kreme. One for the watchlist, at least! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Krispy Kreme.

Of course Krispy Kreme 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.

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