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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Lendway, Inc.'s (NASDAQ:LDWY) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Lendway
Lendway Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Co-CEO & Director Daniel Philp bought US$138k worth of shares at a price of US$4.32 per share. That means that an insider was happy to buy shares at above the current price of US$3.91. 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.
Lendway insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Lendway is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Lendway Insiders Bought Stock Recently
It's good to see that Lendway insiders have made notable investments in the company's shares. In total, insiders bought US$143k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
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. Our data indicates that Lendway insiders own about US$367k worth of shares (which is 5.0% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Lendway Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Lendway stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 3 warning signs for Lendway (2 make us uncomfortable!) and we strongly recommend you look at these before investing.