Some Karat Packaging Inc. (NASDAQ:KRT) shareholders may be a little concerned to see that the Chairman & CEO, Alan Yu, recently sold a substantial US$20m worth of stock at a price of US$27.00 per share. That sale reduced their total holding by 11% which is hardly insignificant, but far from the worst we've seen.
Karat Packaging Insider Transactions Over The Last Year
Notably, that recent sale by Alan Yu is the biggest insider sale of Karat Packaging shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$26.44. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last year Karat Packaging insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Karat Packaging
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Karat Packaging insiders own about US$347m worth of shares (which is 65% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Karat Packaging Insider Transactions Indicate?
Insiders sold Karat Packaging shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Karat Packaging is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Karat Packaging. Every company has risks, and we've spotted 2 warning signs for Karat Packaging you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.