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Even if it's not a huge purchase, we think it was good to see that Carol Kane, the Non-Executive Director of LBG Media plc (LON:LBG) recently shelled out UK£50k to buy stock, at UK£1.06 per share. Although the purchase is not a big one, increasing their shareholding by only 6.2%, it can be interpreted as a good sign.
Check out our latest analysis for LBG Media
LBG Media Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Co-Founder Alexander Solomou for UK£249k worth of shares, at about UK£0.73 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£1.12. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While LBG Media insiders bought shares during the last year, they didn't sell. Their average price was about UK£0.80. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
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's great to see that LBG Media insiders own 42% of the company, worth about UK£99m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About LBG Media Insiders?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like LBG Media insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. Of course, the future is what matters most. So if you are interested in LBG Media, you should check out this free report on analyst forecasts for the company.