Chairman of the Board James Kilts Just Bought Shares In The Simply Good Foods Company (NASDAQ:SMPL)

Those following along with The Simply Good Foods Company (NASDAQ:SMPL) will no doubt be intrigued by the recent purchase of shares by James Kilts, Chairman of the Board of the company, who spent a stonking US$2.0m on stock at an average price of US$22.54. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 12%.

Check out our latest analysis for Simply Good Foods

The Last 12 Months Of Insider Transactions At Simply Good Foods

In fact, the recent purchase by James Kilts was the biggest purchase of Simply Good Foods shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$21.98 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 212.70k shares for US$5.0m. But they sold 17733 shares for US$478k. In total, Simply Good Foods insiders bought more than they sold over the last year. You can see the insider transactions (by 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!

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

Insider Ownership of Simply Good Foods

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Simply Good Foods insiders own about US$42m worth of shares. That equates to 2.0% 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 Do The Simply Good Foods Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Simply Good Foods shares, given these transactions (along with notable insider ownership of the company). 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.

But note: Simply Good Foods may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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