Kinetik Holdings Inc. (NYSE:KNTK) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 21%, resulting in a US$610m rise in the company's market capitalisation, translating to a gain of 82% on their initial investment. As a result, the stock they originally bought for US$2.50m is now worth US$4.54m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Kinetik Holdings

The Last 12 Months Of Insider Transactions At Kinetik Holdings

The Independent Director Kevin McCarthy made the biggest insider purchase in the last 12 months. That single transaction was for US$1m worth of shares at a price of US$31.50 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$57.96. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid US$2.5m for 78.31k shares. But they sold 41.64k shares for US$1.5m. In the last twelve months there was more buying than selling by Kinetik Holdings insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Kinetik Holdings

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Kinetik Holdings insiders own 3.4% of the company, worth about US$313m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Kinetik Holdings Tell Us?

The fact that there have been no Kinetik Holdings insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Kinetik Holdings insiders think the business has merit. 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. When we did our research, we found 4 warning signs for Kinetik Holdings (1 doesn't sit too well with us!) that we believe deserve your full attention.

But note: Kinetik Holdings 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 of direct interests only, but not derivative transactions or indirect interests.

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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.