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Shareholders Might Want to Keep a Close Eye on The Kraft Heinz Company (NASDAQ:KHC) After Insiders Sold US$3.0m Stock Earlier This Year

Simply Wall St ·  Nov 22, 2022 00:45

While The Kraft Heinz Company (NASDAQ:KHC) shareholders have had a good week with the stock up 3.0%, they shouldn't let their guards down. Even though stock prices were relatively low, insiders elected to sell US$3.0m worth of stock in the last year, which could indicate some expected downturn.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Kraft Heinz

The Last 12 Months Of Insider Transactions At Kraft Heinz

In the last twelve months, the biggest single sale by an insider was when the EVP, Global General Counsel, Rashida La Lande, sold US$1.2m worth of shares at a price of US$38.36 per share. That means that an insider was selling shares at around the current price of US$38.10. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last year Kraft Heinz 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volumeNasdaqGS:KHC Insider Trading Volume November 21st 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Kraft Heinz insiders own about US$236m worth of shares (which is 0.5% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Kraft Heinz Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Kraft Heinz, we can't say the same about the selling of shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Kraft Heinz you should be aware of.

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, 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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