Some Kontoor Brands, Inc. (NYSE:KTB) shareholders may be a little concerned to see that the Executive VP, Thomas Doerr, recently sold a substantial US$639k worth of stock at a price of US$83.43 per share. That sale reduced their total holding by 23% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At Kontoor Brands

In fact, the recent sale by Thomas Doerr was the biggest sale of Kontoor Brands shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$84.90, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 23% of Thomas Doerr's holding.

Insiders in Kontoor Brands didn't buy any shares in the last year. 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!

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Does Kontoor Brands Boast High 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. Insiders own 1.7% of Kontoor Brands shares, worth about US$80m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Kontoor Brands Tell Us?

Insiders haven't bought Kontoor Brands stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Kontoor Brands makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! While it's good to be aware of 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. In terms of investment risks, we've identified 4 warning signs with Kontoor Brands and understanding them should be part of your investment process.

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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.

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.