From what we can see, insiders were net buyers in Limeade, Inc.'s (ASX:LME ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Limeade
Limeade Insider Transactions Over The Last Year
Notably, that recent purchase by Non-Executive Director Deven Billimoria was not the only time they bought Limeade shares this year. They previously made an even bigger purchase of AU$122k worth of shares at a price of AU$0.79 per share. That means that an insider was happy to buy shares at above the current price of AU$0.35. 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Deven Billimoria was the only individual insider to buy during the last year.
Deven Billimoria bought 286.94k shares over the last 12 months at an average price of AU$0.59. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Limeade is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Limeade Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Limeade insiders own 31% of the company, worth about AU$28m. 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 Do The Limeade Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Limeade and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Limeade. At Simply Wall St, we found 4 warning signs for Limeade that deserve your attention before buying any shares.