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Even if it's not a huge purchase, we think it was good to see that Philip Brace, the Independent Director of Lantronix, Inc. (NASDAQ:LTRX) recently shelled out US$53k to buy stock, at US$5.34 per share. While that isn't the hugest buy, it actually boosted their shareholding by 494%, which is good to see.
See our latest analysis for Lantronix
Lantronix Insider Transactions Over The Last Year
In fact, the recent purchase by Philip Brace was the biggest purchase of Lantronix shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$4.92). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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. Philip Brace was the only individual insider to buy shares in the last twelve months.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Lantronix 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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Lantronix insiders own 4.2% of the company, worth about US$8.1m. We do generally prefer see higher levels of insider ownership.
So What Do The Lantronix 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Lantronix insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Lantronix has 2 warning signs we think you should be aware of.