KVH Industries' Market Cap Up US$27m Following Year Of Insider Stock Buying

Last week, KVH Industries, Inc. (NASDAQ:KVHI) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 23% last week, resulting in a US$27m increase in the company's market worth, implying a 29% gain on their initial purchase. In other words, the original US$231.2k purchase is now worth US$297.6k.

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

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The Last 12 Months Of Insider Transactions At KVH Industries

The insider Bradley Radoff made the biggest insider purchase in the last 12 months. That single transaction was for US$231k worth of shares at a price of US$5.78 each. Even though the purchase was made at a significantly lower price than the recent price (US$7.44), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for KVH Industries

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

KVH Industries Insiders Bought Stock Recently

At KVH Industries,over the last quarter, we have observed quite a lot more insider buying than insider selling. We can see that insider Bradley Radoff paid US$231k for shares in the company. On the other hand, President Brent Bruun netted US$4.1k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

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. KVH Industries insiders own about US$25m worth of shares. That equates to 17% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About KVH Industries Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest KVH Industries insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.