Yahoo Finance Insiders may be rethinking their US$1.7m Kyndryl Holdings, Inc. (NYSE:KD) investment now that the company has lost US$168m in value
Insiders who bought US$1.7m worth of Kyndryl Holdings, Inc.'s (NYSE:KD) stock at an average buy price of US$17.06 over the last year may be disappointed by the recent 6.1% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$1.2m, which is not great.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Kyndryl Holdings
The Last 12 Months Of Insider Transactions At Kyndryl Holdings
In the last twelve months, the biggest single purchase by an insider was when Chairman & CEO Martin Schroeter bought US$997k worth of shares at a price of US$17.10 per share. That means that an insider was happy to buy shares at above the current price of US$11.53. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.
Kyndryl Holdings insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Kyndryl Holdings 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 suggests Kyndryl Holdings insiders own 0.2% of the company, worth about US$3.9m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Kyndryl Holdings Insiders?
It doesn't really mean much that no insider has traded Kyndryl Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Kyndryl Holdings insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kyndryl Holdings. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Kyndryl Holdings.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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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.
