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Investors who take an interest in Key Tronic Corporation (NASDAQ:KTCC) should definitely note that the Director, Craig Gates, recently paid US$2.41 per share to buy US$108k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 20%.
Key Tronic Insider Transactions Over The Last Year
In fact, the recent purchase by Craig Gates was the biggest purchase of Key Tronic shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (US$2.75), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months Key Tronic insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Key Tronic
Key Tronic 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.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Key Tronic insiders own 6.2% of the company, worth about US$1.8m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Key Tronic Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Key Tronic stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for Key Tronic you should be aware of, and 2 of them are significant.