Yahoo Finance Quite a few insiders invested in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) last year which is positive news for shareholders
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Kratos Defense & Security Solutions, Inc.'s (NASDAQ:KTOS) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Kratos Defense & Security Solutions
The Last 12 Months Of Insider Transactions At Kratos Defense & Security Solutions
In the last twelve months, the biggest single purchase by an insider was when Independent Director Scott Anderson bought US$127k worth of shares at a price of US$12.75 per share. That means that an insider was happy to buy shares at around the current price of US$12.88. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 Kratos Defense & Security Solutions insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 18.00k shares for US$232k. But they sold 13.00k shares for US$164k. In total, Kratos Defense & Security Solutions insiders bought more than they sold 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Insiders At Kratos Defense & Security Solutions Have Sold Stock Recently
The last three months saw significant insider selling at Kratos Defense & Security Solutions. In total, Senior Vice President of Corporate Development & Government Affairs Benjamin Goodwin dumped US$102k 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.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.2% of Kratos Defense & Security Solutions shares, worth about US$35m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Kratos Defense & Security Solutions Tell Us?
An insider sold Kratos Defense & Security Solutions shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So we're happy enough to look past some selling. 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. In terms of investment risks, we've identified 1 warning sign with Kratos Defense & Security Solutions and understanding this should be part of your investment process.
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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