From what we can see, insiders were net buyers in Love Group Global Ltd's (ASX:LVE ) 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Love Group Global
The Last 12 Months Of Insider Transactions At Love Group Global
Over the last year, we can see that the biggest insider purchase was by Founder Michael Ye for AU$80k worth of shares, at about AU$0.10 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.12. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Michael Ye purchased 1.45m shares over the year. The average price per share was AU$0.11. 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!
Love Group Global is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Love Group Global
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Love Group Global insiders own about AU$2.7m worth of shares (which is 57% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Love Group Global Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Love Group Global. Looks promising! 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. Be aware that Love Group Global is showing 3 warning signs in our investment analysis, and 2 of those are significant...