Yahoo Finance Non-Executive Director Deven Billimoria Just Bought 185% More Shares In Limeade, Inc. (ASX:LME)
Even if it's not a huge purchase, we think it was good to see that Deven Billimoria, the Non-Executive Director of Limeade, Inc. (ASX:LME) recently shelled out AU$122k to buy stock, at AU$0.79 per share. Even though that isn't a massive buy, it did increase their holding by 185%, which is arguably a good sign.
See our latest analysis for Limeade
Limeade Insider Transactions Over The Last Year
Notably, that recent purchase by Deven Billimoria is the biggest insider purchase of Limeade shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$0.80. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Limeade insider decided to buy shares at close to current prices. Deven Billimoria was the only individual insider to buy shares in the last twelve months.
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!
Limeade is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Limeade
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 31% of Limeade shares, worth about AU$63m. 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 Limeade Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Limeade we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with Limeade and understanding them should be part of your investment process.
Of course Limeade 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.
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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