Potential Kinaxis Inc. (TSE:KXS) shareholders may wish to note that the Chief Commercial Officer, Paul Carreiro, recently bought CA$249k worth of stock, paying CA$135 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 92%, potentially signalling some real optimism.
The Last 12 Months Of Insider Transactions At Kinaxis
The CEO, President & Director, John Sicard, made the biggest insider sale in the last 12 months. That single transaction was for CA$3.0m worth of shares at a price of CA$200 each. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. It’s of some comfort that this sale was conducted at a price well above the current share price, which is CA$136. So it is hard to draw any strong conclusion from it.
In total, Kinaxis insiders sold more than they bought over the last year. 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!
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I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Kinaxis insiders own about CA$38m worth of shares. That equates to 1.0% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Kinaxis Insiders?
It is good to see the recent insider purchase. But we can’t say the same for the transactions over the last 12 months. The more recent transactions are a positive, but Kinaxis insiders haven’t shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. In short they are likely aligned with shareholders. 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. Every company has risks, and we’ve spotted 3 warning signs for Kinaxis you should know about.
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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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