Some World Kinect Corporation (NYSE:WKC) shareholders may be a little concerned to see that the Independent Director, Richard Kassar, recently sold a substantial US$522k worth of stock at a price of US$26.10 per share. That sale reduced their total holding by 26% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At World Kinect
In the last twelve months, the biggest single sale by an insider was when the Chairman, Michael Kasbar, sold US$1.6m worth of shares at a price of US$27.92 per share. So we know that an insider sold shares at around the present share price of US$26.28. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
World Kinect insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. World Kinect insiders own about US$43m worth of shares. That equates to 2.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About World Kinect Insiders?
Insiders haven't bought World Kinect stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, World Kinect makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with World Kinect (including 1 which is potentially serious).
Of course World Kinect 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
