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Kogan.com Ltd (ASX:KGN) shareholders (or potential shareholders) will be happy to see that the Founder, Ruslan Kogan, recently bought a whopping AU$4.8m worth of stock, at a price of AU$4.77. While that only increased their holding size by 6.3%, it is still a big swing by our standards.
See our latest analysis for Kogan.com
Kogan.com Insider Transactions Over The Last Year
In fact, the recent purchase by Ruslan Kogan was the biggest purchase of Kogan.com shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of AU$4.84. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Kogan.com share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Ruslan Kogan.
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!
Kogan.com is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Kogan.com
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Kogan.com insiders own 21% of the company, worth about AU$100m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Kogan.com Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Kogan.com shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Kogan.com you should know about.
But note: Kogan.com may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.