Yahoo Finance Insider Buyers At LiveHire Likely Disappointed With 14% Slide
Insiders who acquired AU$851.5k worth of LiveHire Limited's (ASX:LVH) stock at an average price of AU$0.037 in the past 12 months may be dismayed by the recent 14% price decline. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth AU$436.6k, which is not what they expected.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for LiveHire
The Last 12 Months Of Insider Transactions At LiveHire
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Christy Forest for AU$675k worth of shares, at about AU$0.035 per share. That means that an insider was happy to buy shares at above the current price of AU$0.019. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 22.98m shares for AU$851k. But they sold 466.29k shares for AU$24k. In total, LiveHire insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
LiveHire is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
LiveHire Insiders Bought Stock Recently
There was some insider buying at LiveHire over the last quarter. Insiders bought AU$54k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
Insider Ownership Of LiveHire
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. LiveHire insiders own about AU$2.1m worth of shares. That equates to 30% of the company. 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 Does This Data Suggest About LiveHire Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in LiveHire shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing LiveHire. Our analysis shows 6 warning signs for LiveHire (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.
But note: LiveHire 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 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.
