Investors who take an interest in Kip McGrath Education Centres Limited (ASX:KME) should definitely note that the Independent Non-Executive Director, Trevor Folsom, recently paid AU$1.19 per share to buy AU$261k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 57%.
Kip McGrath Education Centres Insider Transactions Over The Last Year
Notably, that recent purchase by Trevor Folsom is the biggest insider purchase of Kip McGrath Education Centres shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$1.20. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Kip McGrath Education Centres share holders is that insiders were buying at near the current price.
In the last twelve months Kip McGrath Education Centres insiders were buying shares, but not selling. 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!
Kip McGrath Education Centres is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Kip McGrath Education Centres Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 29% of Kip McGrath Education Centres shares, worth about AU$19m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Kip McGrath Education Centres Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Kip McGrath Education Centres 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. At Simply Wall St, we've found that Kip McGrath Education Centres has 4 warning signs (2 can't be ignored!) that deserve your attention before going any further with your analysis.
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.