Yahoo Finance Little Green Pharma Slides As Insider Purchases Lose Another AU$58k
Insiders who acquired AU$187.4k worth of Little Green Pharma Ltd's (ASX:LGP) stock at an average price of AU$0.18 in the past 12 months may be dismayed by the recent 11% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$129.2k which is not ideal.
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.
See our latest analysis for Little Green Pharma
Little Green Pharma Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Alexander Waislitz bought AU$100k worth of shares at a price of AU$0.18 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.13). 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. 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 Little Green Pharma insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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).
Little Green Pharma Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Little Green Pharma. Executive Director Fleta Solomon purchased AU$50k worth of shares in that period. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Does Little Green Pharma Boast High Insider Ownership?
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 16% of Little Green Pharma shares, worth about AU$5.9m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Little Green Pharma Insiders?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Little Green Pharma and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Little Green Pharma. In terms of investment risks, we've identified 2 warning signs with Little Green Pharma and understanding these should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
