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Quite a few insiders have dramatically grown their holdings in Leading Edge Materials Corp. (CVE:LEM) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Leading Edge Materials
The Director Eric Krafft made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.3m worth of shares at a price of CA$0.10 each. We do like to see buying, but this purchase was made at well below the current price of CA$0.17. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid CA$1.5m for 15.00m shares. But they sold 500.00k shares for CA$50k. Overall, Leading Edge Materials insiders were net buyers during the last year. 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!
View our latest analysis for Leading Edge Materials
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Leading Edge Materials 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. Leading Edge Materials insiders own about CA$15m worth of shares. That equates to 39% of the company. 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 Does This Data Suggest About Leading Edge Materials Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Leading Edge Materials and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Leading Edge Materials. At Simply Wall St, we've found that Leading Edge Materials has 5 warning signs (3 are a bit concerning!) that deserve your attention before going any further with your analysis.