Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of KMD Brands Limited (NZSE:KMD), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

We check all companies for important risks. See what we found for KMD Brands in our free report.

The Last 12 Months Of Insider Transactions At KMD Brands

The CEO, MD & Director Brent Scrimshaw made the biggest insider purchase in the last 12 months. That single transaction was for NZ$159k worth of shares at a price of NZ$0.34 each. That implies that an insider found the current price of NZ$0.34 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. The good news for KMD Brands share holders is that insiders were buying at near the current price.

While KMD Brands insiders bought shares during the last year, they didn't sell. 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!

See our latest analysis for KMD Brands

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At KMD Brands Have Bought Stock Recently

It's good to see that KMD Brands insiders have made notable investments in the company's shares. We can see that CEO, MD & Director Brent Scrimshaw paid NZ$267k for shares in the company. No-one sold. This makes one think the business has some good points.

Does KMD Brands Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From what we can see in our data, insiders own only about NZ$1.3m worth of KMD Brands shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. This level of insider ownership is notably low, and not very encouraging.