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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 KMD Brands Limited's (NZSE:KMD) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for KMD Brands
KMD Brands Insider Transactions Over The Last Year
The Group CEO Michael Daly made the biggest insider purchase in the last 12 months. That single transaction was for NZ$86k worth of shares at a price of NZ$0.54 each. That means that even when the share price was higher than NZ$0.40 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 631.88k shares worth NZ$336k. On the other hand they divested 100.00k shares, for NZ$51k. Overall, KMD Brands 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. By clicking on the graph below, you can see the precise details of each insider transaction!
KMD Brands is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At KMD Brands Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at KMD Brands. Independent Non-Executive Director Abigail Foote shelled out NZ$47k for shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Does KMD Brands Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data isn't picking up on much insider ownership at KMD Brands, though insiders do hold about NZ$1.2m worth of shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. This level of insider ownership is notably low, and not very encouraging.