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Potential Lamb Weston Holdings, Inc. (NYSE:LW) shareholders may wish to note that the Independent Director, Peter Bensen, recently bought US$279k worth of stock, paying US$55.75 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 72%.
Lamb Weston Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by Peter Bensen was the biggest purchase of Lamb Weston Holdings shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$56.24 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Lamb Weston Holdings insiders decided to buy shares at close to current prices.
While Lamb Weston Holdings insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and 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!
Lamb Weston Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Lamb Weston Holdings
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. Lamb Weston Holdings insiders own about US$46m worth of shares. That equates to 0.6% of the company. 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 Lamb Weston Holdings Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Lamb Weston Holdings we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lamb Weston Holdings. Be aware that Lamb Weston Holdings is showing 3 warning signs in our investment analysis, and 1 of those is significant...
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, but not derivative transactions.
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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