Yahoo Finance Insiders rewarded with a US$55k addition on top of their US$2.2m purchase as KAR Auction Services, Inc. (NYSE:KAR) hits US$1.6b
KAR Auction Services, Inc. (NYSE:KAR) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 4.1%, resulting in a US$61m rise in the company's market capitalisation. Put another way, the original US$2.2m acquisition is now worth US$2.2m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for KAR Auction Services
The Last 12 Months Of Insider Transactions At KAR Auction Services
In the last twelve months, the biggest single purchase by an insider was when Executive Chairman of the Board James Hallett bought US$1.3m worth of shares at a price of US$13.15 per share. So it's clear an insider wanted to buy, at around the current price, which is US$13.50. 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. 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 KAR Auction Services insiders decided to buy shares at close to current prices.
While KAR Auction Services insiders bought shares during the last year, they didn't sell. 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!
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 KAR Auction Services Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that KAR Auction Services insiders own 1.8% of the company, worth about US$27m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At KAR Auction Services Tell Us?
The fact that there have been no KAR Auction Services insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think KAR Auction Services insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for KAR Auction Services you should know about.
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.
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