Whilst it may not be a huge deal, we thought it was good to see that the Kits Eyecare Ltd. (TSE:KITS) Co-Founder, Roger Hardy, recently bought CA$83k worth of stock, for CA$2.58 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
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Kits Eyecare Insider Transactions Over The Last Year
In fact, the recent purchase by Co-Founder Roger Hardy was not their only acquisition of Kits Eyecare shares this year. Earlier in the year, they paid CA$2.60 per share in a CA$620k purchase. That means that even when the share price was higher than CA$2.57 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Roger Hardy was the only individual insider to buy during the last year.
Roger Hardy bought 800.70k shares over the last 12 months at an average price of CA$2.33. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Kits Eyecare 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. It's great to see that Kits Eyecare insiders own 44% of the company, worth about CA$35m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Kits Eyecare Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Kits Eyecare insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kits Eyecare. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Kits Eyecare.