Insiders acquired a large share last year

Generally, when one insider buys a stock, it’s usually no big deal. However, when several insiders buy, as in the case Kip McGrath Limited Education Center (ASX:KME), this sends a good message to the company’s shareholders.

While insider trading isn’t the most important thing in long-term investing, we think it makes perfect sense to keep an eye on what insiders are doing.

Check out our latest analysis for the Kip McGrath Center for Education

Last 12 Months Insider Dealing At Kip McGrath Education Center

In the last twelve months, the largest single insider buy was when Independent Non-Executive Director Trevor Folsom bought AU$261k worth of stock at AU$1.19 per share. This means that even if the share price is higher than AU$0.81 (recent price), insiders want to buy the stock. Their outlook may have changed since then, but at least it shows that they were feeling optimistic back then. In our view, the price that insiders pay for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought the stock above its current price, because that shows they view the stock as a good value, even at a higher price.

In the last twelve months Education Center insider Kip McGrath has bought shares, but not sold. You can see a visual overview of insider dealings (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much, and when, just click the chart below!

insider trading volume

insider trading volume

There are plenty of other companies that have insiders buying stock. you probably did no want to skip this Free growing list of insider buying companies.

Kip McGrath Education Center Insider Ownership

Looking at the total insider shareholding in a company can help inform your view of whether they align with common shareholders. Typically, the higher insider ownership, the more likely it is that insiders will be incentivized to build the company over the long term. It appears that Kip McGrath Education Center insider owns 28% of the company, valued at around AU$13 million. We certainly see higher levels of insider ownership elsewhere, but this ownership is sufficient to demonstrate alignment between insiders and other shareholders.

What Could Insider Trading at the Kip McGrath Education Center Tell Us?

The fact that there were no recent Kip McGrath Education Center insider dealings certainly doesn’t bother us. However, our analysis of transactions over the past year has been very encouraging. Overall we haven’t seen anything that makes us think Kip McGrath Education Center insiders have any doubts about the company, and they own the stock. In addition to knowing about the insider dealings that took place, it helps to identify the risks facing the Kip McGrath Education Center. On Simply Wall St, we found 2 warning signs for the Kip McGrath Education Center which you should consider before buying any stock.

Of course, You may find a fantastic investment by looking elsewhere. So take a peek at this Free list of companies of interest.

For the purposes of this article, insiders are people who report their dealings to the relevant regulatory bodies. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst forecasts using only an impartial methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take into account your objectives, or your financial situation. We aim to provide you with long-term focused analysis driven by fundamental data. Note that our analysis may not take into account recent price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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