Yahoo Finance Have Insiders Been Buying Leucrotta Exploration Inc. (CVE:LXE) Shares?
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Leucrotta Exploration Inc. (CVE:LXE), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.
View our latest analysis for Leucrotta Exploration
Leucrotta Exploration Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Robert Disbrow for CA$136k worth of shares, at about CA$0.43 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.80), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 2.04m shares worth CA$787k. On the other hand they divested 203.50k shares, for CA$121k. Overall, Leucrotta Exploration 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Leucrotta Exploration is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Are Leucrotta Exploration Insiders Buying Or Selling?
There was some insider buying at Leucrotta Exploration over the last quarter. insider Robert Disbrow bought CA$30k worth in that time. On the other hand, insider Robert Disbrow sold CA$19k worth of shares. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.
Does Leucrotta Exploration Boast High 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 appears that Leucrotta Exploration insiders own 19% of the company, worth about CA$30m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Leucrotta Exploration Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Insiders own shares in Leucrotta Exploration and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Leucrotta Exploration and understanding these should be part of your investment process.
But note: Leucrotta Exploration 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.
This article by Simply Wall St is general in nature. 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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