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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Kendrion N.V.'s (AMS:KENDR) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Kendrion
In the last twelve months, the biggest single purchase by an insider was when Independent Chairman of the Supervisory Board Frits van Hout bought €101k worth of shares at a price of €13.30 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being €11.08). 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 generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 33.53k shares for €407k. But insiders sold 1.00k shares worth €14k. Overall, Kendrion insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 Kendrion
Kendrion 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 Kendrion Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.9% of Kendrion shares, worth about €6.8m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Kendrion Tell Us?
The fact that there have been no Kendrion insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Kendrion insiders are doubting 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. To that end, you should learn about the 3 warning signs we've spotted with Kendrion (including 2 which make us uncomfortable).