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Insiders who acquired US$752.6k worth of Klaviyo, Inc.'s (NYSE:KVYO) stock at an average price of US$32.72 in the past 12 months may be dismayed by the recent 17% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$592.7k, which is not great.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Klaviyo Insider Transactions Over The Last Year
The insider Jeffrey Fagnan made the biggest insider purchase in the last 12 months. That single transaction was for US$502k worth of shares at a price of US$37.14 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$25.77). 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. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Jeffrey Fagnan was the only individual insider to buy during the last year.
Jeffrey Fagnan bought a total of 23.00k shares over the year at an average price of US$32.72. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Klaviyo
Klaviyo is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Klaviyo Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Klaviyo insiders own 41% of the company, currently worth about US$2.9b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Klaviyo Insider Transactions Indicate?
The fact that there have been no Klaviyo insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Klaviyo insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Klaviyo you should be aware of.