Kennametal Inc. (NYSE:KMT) insiders profited after buying shares worth $992,000 last year, current gains stand at $11,000
Kennametal Inc. (NYSE:KMT) Insiders who have bought stocks in the past 12 months can probably afford to ignore the recent 3.7% drop in the stock price. After taking into account the recent loss, the $992,000 of shares they purchased are now worth $1.0 million, indicating that their investment has generated a positive return.
While insider trading isn’t the most important thing when it comes to long-term investing, we think it makes perfect sense to keep tabs on what insiders are doing.
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The Last 12 Months of Insider Trading at Kennametal
Independent director William Lambert made the biggest insider buy in the past 12 months. This single transaction was for US$962,000 of shares at a price of US$26.23 each. This implies that an insider found the current price of US$26.59 per share attractive. This means that they have been optimistic about the company in the past, although they may have changed their minds. We always like to see insider buying, but it’s worth noting if those buys were made well below the current stock price, as the discount to value may have diminished as the price rose. The good news for Kennametal shareholders is that insiders were buying close to the current price.
Kennametal insiders may have bought shares last year, but they haven’t sold any. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
Kennametal isn’t the only insider stock to buy. So take a look at this free list of growing companies with insider buying.
Kennametal Insider Ownership
For an ordinary shareholder, it is worth checking how many shares are held by company insiders. I think it’s a good sign if insiders have a significant number of shares in the company. Insiders own 0.8% of Kennametal stock, worth approximately $18 million. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.
What could insider trading at Kennametal tell us?
The fact that there have been no insider trading with Kennametal recently certainly doesn’t bother us. However, our analysis of transactions over the past year is encouraging. Overall, we see nothing to suggest that Kennametal insiders doubt the company, and they own stock. While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making an investment decision. Every business has risks, and we’ve spotted 1 warning sign for Kennametal you should know.
Sure Kennametal may not be the best stock to buy. So you might want to see this free set of high quality companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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