Yahoo Finance Insider Buying: The Liquidity Services, Inc. (NASDAQ:LQDT) Co-founder Just Bought US$273k Worth Of Shares
Investors who take an interest in Liquidity Services, Inc. (NASDAQ:LQDT) should definitely note that the Co-founder, William Angrick, recently paid US$4.68 per share to buy US$273k worth of the stock. Although the purchase only increased their holding by 1.1%, it is still a solid purchase in our view.
View our latest analysis for Liquidity Services
The Last 12 Months Of Insider Transactions At Liquidity Services
In fact, the recent purchase by William Angrick was the biggest purchase of Liquidity Services shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$4.08 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 68.36k shares for US$319k. On the other hand they divested 13134 shares, for US$93k. In the last twelve months there was more buying than selling by Liquidity Services insiders. You can see the insider transactions (by 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Liquidity 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Liquidity Services insiders own 19% of the company, worth about US$27m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Liquidity Services Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Liquidity Services insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Liquidity Services 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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