Some Kornit Digital Ltd. (NASDAQ:KRNT) shareholders may be a little concerned to see that the Chief Technology Officer, Kobi Mann, recently sold a substantial US$1.7m worth of stock at a price of US$17.43 per share. That diminished their holding by a very significant 60%, which arguably implies a strong desire to reallocate capital.
The Last 12 Months Of Insider Transactions At Kornit Digital
Notably, that recent sale by Kobi Mann is the biggest insider sale of Kornit Digital shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$17.93, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 60% of Kobi Mann's holding.
Insiders in Kornit Digital didn't buy any shares in 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!
See our latest analysis for Kornit Digital
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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. From our data, it seems that Kornit Digital insiders own 0.7% of the company, worth about US$5.5m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Kornit Digital Insiders?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Kornit Digital and understanding them should be part of your investment process.
But note: Kornit Digital may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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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.