Yahoo Finance Pleasing Signs As A Number Of Insiders Buy Kits Eyecare Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Kits Eyecare Ltd.'s (TSE:KITS) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Kits Eyecare
Kits Eyecare Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Co-Founder Roger Hardy for CA$275k worth of shares, at about CA$5.00 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$6.40), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Kits Eyecare insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Kits Eyecare is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Kits Eyecare Have Bought Stock Recently
We saw some Kits Eyecare insider buying shares in the last three months. C.M.O. Robert Long purchased CA$54k worth of shares in that period. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership
Many investors like to check how much of a company is owned by 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. Kits Eyecare insiders own about CA$82m worth of shares (which is 40% 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.
So What Do The Kits Eyecare Insider Transactions Indicate?
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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Kits Eyecare. One for the watchlist, at least! Of course, the future is what matters most. So if you are interested in Kits Eyecare, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
