Yahoo Finance One London City Equities Insider Raised Stake By 11% In Previous Year
Insiders were net buyers of London City Equities Limited's (ASX:LCE ) stock during the past year. That is, insiders bought more stock than they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for London City Equities
The Last 12 Months Of Insider Transactions At London City Equities
Over the last year, we can see that the biggest insider purchase was by Chairman & COO Peter E. Murray for AU$118k worth of shares, at about AU$0.58 per share. That means that an insider was happy to buy shares at above the current price of AU$0.52. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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. Peter E. Murray was the only individual insider to buy during the last year.
Peter E. Murray bought 208.03k shares over the last 12 months at an average price of AU$0.57. 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!
London City Equities 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 London City Equities
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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's great to see that London City Equities insiders own 50% of the company, worth about AU$8.1m. 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 London City Equities Insiders?
The fact that there have been no London City Equities insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, London City Equities insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing London City Equities. When we did our research, we found 4 warning signs for London City Equities (3 are significant!) that we believe deserve your full attention.
But note: London City Equities 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
