Yahoo Finance Insiders purchases in Liberty Broadband Corporation (NASDAQ:LBRD.K) last year yet to pay off, remain down US$26k despite recent gains
Insiders who purchased US$136k worth of Liberty Broadband Corporation (NASDAQ:LBRD.K) shares over the past year recouped some of their losses after price gained 6.3% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$26k since the time of purchase.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Liberty Broadband
Liberty Broadband Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Julie Frist bought US$136k worth of shares at a price of US$147 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$116). 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Julie Frist. We note that Julie Frist was both the biggest buyer and the biggest seller.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insider Ownership Of Liberty Broadband
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. Liberty Broadband insiders own 7.9% of the company, currently worth about US$1.5b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Liberty Broadband Insiders?
It doesn't really mean much that no insider has traded Liberty Broadband shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Liberty Broadband insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Liberty Broadband you should know about.
But note: Liberty Broadband 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.
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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.
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