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Those following along with LightInTheBox Holding Co., Ltd. (NYSE:LITB) will no doubt be intrigued by the recent purchase of shares by Jian He, CEO & Director of the company, who spent a stonking US$2.1m on stock at an average price of US$1.25. That purchase boosted their holding by 1,559%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
See our latest analysis for LightInTheBox Holding
The Last 12 Months Of Insider Transactions At LightInTheBox Holding
Notably, that recent purchase by Jian He is the biggest insider purchase of LightInTheBox Holding shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$1.01. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Jian He was the only individual insider to buy 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!
LightInTheBox Holding is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of LightInTheBox Holding
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 15% of LightInTheBox Holding shares, worth about US$17m. 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 Do The LightInTheBox Holding Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of LightInTheBox Holding we think they are probably pretty confident of a bright future. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.