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In the last year, multiple insiders have substantially increased their holdings of The Lottery Corporation Limited (ASX:TLC) stock, indicating that insiders' optimism about the company's prospects has increased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Lottery
The Last 12 Months Of Insider Transactions At Lottery
The MD, CEO & Director Sue van der Merwe made the biggest insider purchase in the last 12 months. That single transaction was for AU$810k worth of shares at a price of AU$5.09 each. That means that an insider was happy to buy shares at around the current price of AU$5.15. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Lottery share holders is that insiders were buying at near the current price.
In the last twelve months Lottery 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!
Lottery is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Lottery Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Lottery. MD, CEO & Director Sue van der Merwe spent AU$810k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Insider Ownership Of Lottery
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 Lottery insiders own 0.3% of the company, worth about AU$35m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Lottery Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Lottery shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Lottery that deserve your attention before buying any shares.