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Whilst it may not be a huge deal, we thought it was good to see that the LiveOne, Inc. (NASDAQ:LVO) Founder, Robert Ellin, recently bought US$83k worth of stock, for US$2.37 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
See our latest analysis for LiveOne
The Last 12 Months Of Insider Transactions At LiveOne
In fact, the recent purchase by Founder Robert Ellin was not their only acquisition of LiveOne shares this year. Earlier in the year, they paid US$1.99 per share in a US$85k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$2.22. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While LiveOne insiders bought shares during the last year, they didn't sell. They paid about US$2.74 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
LiveOne is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does LiveOne Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that LiveOne insiders own 18% of the company, worth about US$31m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The LiveOne Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of LiveOne we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for LiveOne you should be aware of.
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.