In This Article:
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of LPA Group Plc (LON:LPA), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for LPA Group
LPA Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board Robert Bodnar-Horvath for UK£51k worth of shares, at about UK£0.73 per share. That implies that an insider found the current price of UK£0.73 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. The good news for LPA Group share holders is that insiders were buying at near the current price.
In the last twelve months LPA Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
LPA Group 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 LPA Group
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. LPA Group insiders own about UK£3.2m worth of shares. That equates to 33% 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 LPA Group Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think LPA Group insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing LPA Group. Be aware that LPA Group is showing 3 warning signs in our investment analysis, and 1 of those is concerning...