Chairman & CEO Alan Yu Just Bought A Handful Of Shares In Karat Packaging Inc. (NASDAQ:KRT)

Karat Packaging Inc. (NASDAQ:KRT) shareholders (or potential shareholders) will be happy to see that the Chairman & CEO, Alan Yu, recently bought a whopping US$673k worth of stock, at a price of US$14.06. While that only increased their holding size by 0.6%, it is still a big swing by our standards.

Check out our latest analysis for Karat Packaging

The Last 12 Months Of Insider Transactions At Karat Packaging

In fact, the recent purchase by Alan Yu was the biggest purchase of Karat Packaging 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$14.00 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays 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.

Over the last year, we can see that insiders have bought 57.45k shares worth US$805k. But they sold 36.13k shares for US$677k. In total, Karat Packaging insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Karat Packaging is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Karat Packaging insiders own 71% of the company, worth about US$198m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Karat Packaging Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Karat Packaging insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Karat Packaging.

But note: Karat Packaging 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.

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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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