Yahoo Finance Kraft Heinz Insiders Sell US$2.6m Of Stock, Possibly Signalling Caution
Over the past year, many The Kraft Heinz Company (NASDAQ:KHC) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Kraft Heinz
Kraft Heinz Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Executive VP and Chief Legal & Corporate Affairs Officer, Rashida La Lande, sold US$1.0m worth of shares at a price of US$41.00 per share. So what is clear is that an insider saw fit to sell at around the current price of US$38.07. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Kraft Heinz insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Kraft Heinz better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders At Kraft Heinz Have Sold Stock Recently
The last quarter saw substantial insider selling of Kraft Heinz shares. In total, insider Cory Onell dumped US$495k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Does Kraft Heinz Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Kraft Heinz insiders own 0.3% of the company, worth about US$126m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Kraft Heinz Tell Us?
An insider hasn't bought Kraft Heinz 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. But it is good to see that Kraft Heinz is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Kraft Heinz.
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 of direct interests only, but not derivative transactions or indirect interests.
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