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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Landsea Homes Corporation (NASDAQ:LSEA), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Landsea Homes
The Last 12 Months Of Insider Transactions At Landsea Homes
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Elias Farhat, sold US$724k worth of shares at a price of US$12.07 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$8.22. So it may not shed much light on insider confidence at current levels.
Over the last year, we can see that insiders have bought 118.88k shares worth US$1.4m. But they sold 92.15k shares for US$1.1m. Overall, Landsea Homes insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Landsea Homes is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Landsea Homes Have Sold Stock Recently
The last three months saw significant insider selling at Landsea Homes. Specifically, Independent Director Thomas Hartfield ditched US$53k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Landsea Homes insiders own 15% of the company, worth about US$42m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Landsea Homes Tell Us?
An insider sold stock recently, but they haven't been buying. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Landsea Homes. Every company has risks, and we've spotted 4 warning signs for Landsea Homes (of which 1 is potentially serious!) you should know about.