Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of LSL Property Services plc (LON:LSL), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At LSL Property Services
Over the last year, we can see that the biggest insider purchase was by Group CEO & Executive Director David Stewart for UK£68k worth of shares, at about UK£4.02 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£3.41). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
LSL Property Services insiders may have bought shares in the last year, but they didn't sell any. 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!
LSL Property Services is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at LSL Property Services Have Bought Stock Recently
Over the last quarter, LSL Property Services insiders have spent a meaningful amount on shares. Overall, three insiders shelled out UK£136k for shares in the company -- and none sold. That shows some optimism about the company's future.
Does LSL Property Services Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 10% of LSL Property Services shares, worth about UK£36m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At LSL Property Services Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of LSL Property Services we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing LSL Property Services. To that end, you should learn about the 3 warning signs we've spotted with LSL Property Services (including 2 which don't sit too well with us).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.