Richard Boucher, a director at Kennedy-Wilson Holdings (KW), recently added 24,000 shares. The buy increased his holdings by just over 50 percent, and came to a total cost just under $563,000.
This marks the first insider transaction of 2022. Going back one year, company insiders have been exclusively buyers, with a few sales going back further. Over the past three years, insider buys have slightly beaten out insider sales.
Overall, insiders at the company own about 15 percent of shares.
Shares of the real estate development company are up about in-line with the S&P 500 over the past year. However, a strong real estate market has led to revenue rising 64 percent, and the company sports a hefty 52 percent profit margin.
Action to take: Investors may like shares here, as the company yields 4.2 percent to start, and has a history of raising its dividend over time. Real estate is a somewhat defensive sector in uncertain markets as well.
Options traders have only a few choices, but the September $25 calls, last going with a bid/ask spread of about $0.75, offer some upside potential on a move higher in shares. However, the company’s 52-week high is about $25 per share, so there could be some volatility as shares reach that price point.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.