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Over the last year, a good number of insiders have significantly increased their holdings in Kingfisher plc (LON:KGF). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Kingfisher
The Last 12 Months Of Insider Transactions At Kingfisher
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Jeffrey Carr bought UK£519k worth of shares at a price of UK£2.60 per share. That means that even when the share price was higher than UK£2.41 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Kingfisher insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. From looking at our data, insiders own UK£2.0m worth of Kingfisher stock, about 0.04% of the company. We consider this fairly low insider ownership.
So What Do The Kingfisher Insider Transactions Indicate?
The fact that there have been no Kingfisher insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Kingfisher insiders are doubting the company. 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. To that end, you should learn about the 2 warning signs we've spotted with Kingfisher (including 1 which shouldn't be ignored).