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In the last year, multiple insiders have substantially increased their holdings of Lifestyle Communities Limited (ASX:LIC) stock, indicating that insiders' optimism about the company's prospects has increased.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Lifestyle Communities
Lifestyle Communities Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Founder James Kelly bought AU$10.0m worth of shares at a price of AU$16.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$8.12). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Lifestyle Communities 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
Lifestyle Communities 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 Lifestyle Communities Have Bought Stock Recently
There was some insider buying at Lifestyle Communities over the last quarter. Insiders shelled out AU$54k for shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Does Lifestyle Communities Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Lifestyle Communities insiders own about AU$64m worth of shares. That equates to 6.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.