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Bullish KeyCorp Insiders Loaded Up On US$883k Of Stock \

Over the last year, a good number of insiders have significantly increased their holdings in KeyCorp (NYSE:KEY). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

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.

View our latest analysis for KeyCorp

KeyCorp Insider Transactions Over The Last Year

In fact, the recent purchase by Andrew Paine was the biggest purchase of KeyCorp shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$9.83 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the KeyCorp insiders decided to buy shares at close to current prices.

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In the last twelve months insiders purchased 87.70k shares for US$883k. But they sold 50.20k shares for US$793k. Overall, KeyCorp 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!

insider-trading-volume
insider-trading-volume

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.

KeyCorp Insiders Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at KeyCorp. In total, four insiders bought US$883k worth of shares in that time. But Executive VP & Chief Information Officer Amy Brady sold shares worth US$701k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership Of KeyCorp

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that KeyCorp insiders own 0.4% of the company, worth about US$36m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At KeyCorp Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in KeyCorp shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - KeyCorp has 2 warning signs we think you should be aware of.

Of course KeyCorp may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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

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