Yahoo Finance This Lemonade Insider Increased Their Holding In The Last Year
Viewing insider transactions for Lemonade, Inc.'s (NYSE:LMND ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Lemonade
Lemonade Insider Transactions Over The Last Year
In fact, the recent purchase by Timothy Bixby was the biggest purchase of Lemonade shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$17.77 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Lemonade insider decided to buy shares at close to current prices. Timothy Bixby was the only individual insider to buy shares in the last twelve months. Notably Timothy Bixby was also the biggest seller.
In total, Lemonade insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Lemonade better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders At Lemonade Have Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Lemonade. In total, CFO & Principal Accounting Officer Timothy Bixby bought US$165k worth of shares in that time. But we did see insider selling worth US$100k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Lemonade insiders own 5.6% of the company, worth about US$70m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Lemonade Insider Transactions Indicate?
It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. While recent transactions indicate confidence in Lemonade, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. Overall they seem reasonably aligned. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Lemonade has 2 warning signs we think you should be aware of.
Of course Lemonade 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 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.
