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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in LMP Automotive Holdings, Inc.'s (NASDAQ:LMPX) instance, it's good news for shareholders.
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.
Check out our latest analysis for LMP Automotive Holdings
LMP Automotive Holdings Insider Transactions Over The Last Year
Notably, that recent sale by Chairman of the Board of Directors Samer Tawfik was not the only time they traded LMP Automotive Holdings shares this year. They previously purchased US$453k worth of shares at a price of US$16.10 per share. That means that an insider was happy to buy shares at above the current price of US$6.43. 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. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Samer Tawfik was also the biggest seller.
Over the last year, we can see that insiders have bought 68.08k shares worth US$940k. On the other hand they divested 55.50k shares, for US$385k. In total, LMP Automotive Holdings insiders bought more than they sold over the last year. They paid about US$13.81 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
LMP Automotive Holdings Insiders Are Selling The Stock
We've seen more insider selling than insider buying at LMP Automotive Holdings recently. In that time, insiders dumped US$385k worth of shares. On the flip side, insiders spent US$330k on purchasing shares. The share price has moved a bit recently, but it's hard to argue that the selling is a positive.
Insider Ownership
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. LMP Automotive Holdings insiders own about US$26m worth of shares. That equates to 37% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.