Here are a few numbers from Kirkland’s (KIRK) to illustrate the importance of paying attention to what insiders are doing at companies:
Carl Kirkland:
- 3,464,032 shares purchased on September 22, 2008 for $6,754,862 ($1.95 per share)
- 2,639,900 shares sold since September 22, 2008 for proceeds of $30,742,256 (for an average sales price of $11.65 per share)
- 824,132 shares from the September 2008 purchase still owned, for a current value (as of market close on 4/27) of $19,251,724 ($23.36 per share)
Total share sales plus current market value of shares bought in September of 2008 = $49,993,980 (or 7.4 times the initial investment)