Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Light Science Technologies Holdings Plc (LON:LST), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Light Science Technologies Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Non-Executive Director, Robert Naylor, for UK£198k worth of shares, at about UK£0.12 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is UK£0.077. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Robert Naylor. Notably Robert Naylor was also the biggest buyer, having purchased UK£223k worth of shares.
In the last twelve months insiders purchased 1.77m shares for UK£223k. But insiders sold 1.65m shares worth UK£198k. Overall, Light Science Technologies Holdings insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Light Science Technologies Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Light Science Technologies Holdings
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. Light Science Technologies Holdings insiders own 55% of the company, currently worth about UK£7.4m based on the recent share price. 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 Light Science Technologies Holdings Tell Us?
It doesn't really mean much that no insider has traded Light Science Technologies Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Light Science Technologies Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Light Science Technologies Holdings. Case in point: We've spotted 2 warning signs for Light Science Technologies Holdings you should be aware of.
Of course Light Science Technologies Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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