As the market capitalization of Kopin Corporation (NASDAQ: KOPN)) fell by $ 88 million, insiders who sold $ 7.8 million of shares were able to make up for their losses
Initiated to Kopin Company (NASDAQ: KOPN) has sold $ 7.8 million shares at an average price of $ 9.63 per share over the past year, getting the most out of their investment. The company’s market valuation fell by US $ 88 million after the stock price fell 15% over the past week, but insiders were spared painful losses.
While we don’t believe shareholders should just follow insider trading, we believe it would be foolish to ignore insider trading altogether.
See our latest analysis for Kopin
Kopin insider trading in the past year
Secretary and Independent Director David Brook made the biggest insider sale in the past 12 months. This one-time transaction involved shares valued at US $ 2.9 million at a price of US $ 9.57 each. While insider selling is negative, for us it is even more so if stocks are sold for a lower price. It is heartwarming that this sale was made at a much higher price than the current share price, which is US $ 5.38. So this may not tell us anything about what insiders think about the current share price.
In total, insiders sold more Kopin shares than they bought in the past year. Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. If you want to know exactly who sold, for how much and when, just click on the graph below!
If you like to buy stocks that insiders buy rather than sell, then you might love this free list of companies. (Hint: insiders bought them).
Does Kopin boast of ownership of a high insider?
I like to look at how many shares insiders own in a company, to help inform my perspective on their alignment with insiders. We generally like to see fairly high levels of insider ownership. It appears that Kopin insiders own 7.7% of the company, worth around $ 37 million. This level of insider ownership is good but just short of being particularly noteworthy. It certainly suggests a reasonable degree of alignment.
What could insider trading at Kopin tell us?
It doesn’t mean much that no insider traded Kopin shares in the past quarter. Still, insider trading at Kopin over the past 12 months is not very encouraging. The modest level of insider ownership is, at least, some comfort. In addition to knowing the current insider transactions, it is useful to identify the risks facing Kopin. Our analysis shows 4 warning signs for Kopin (1 is concerning!) And we strongly recommend that you consult them before investing.
Sure Kopin might not be the best stock to buy. So you might want to see this free collection of high quality businesses.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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