Yahoo Finance Trade Alert: The Non-Executive Director Of Lefroy Exploration Limited (ASX:LEX), Michael Macgregor Davies, Has Just Spent AU$100k Buying 2.6% More Shares
Even if it's not a huge purchase, we think it was good to see that Michael Macgregor Davies, the Non-Executive Director of Lefroy Exploration Limited (ASX:LEX) recently shelled out AU$100k to buy stock, at AU$0.24 per share. However, it only increased their shares held by 2.6%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Lefroy Exploration
Lefroy Exploration Insider Transactions Over The Last Year
In fact, the recent purchase by Michael Macgregor Davies was the biggest purchase of Lefroy Exploration shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.23). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Lefroy Exploration insiders were buying shares, but not selling. 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!
Lefroy Exploration is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 24% of Lefroy Exploration shares, worth about AU$8.8m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Lefroy Exploration Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Lefroy Exploration shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Lefroy Exploration has 5 warning signs (and 3 which shouldn't be ignored) we think you should know about.
Of course Lefroy Exploration may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
