In This Article:
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of LiveHire Limited (ASX:LVH), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for LiveHire
LiveHire Insider Transactions Over The Last Year
The insider Richard Smith made the biggest insider purchase in the last 12 months. That single transaction was for AU$305k worth of shares at a price of AU$0.22 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.059). 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 generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While LiveHire insiders bought shares during the last year, they didn't sell. They paid about AU$0.14 on average. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
LiveHire is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
LiveHire Insiders Bought Stock Recently
It's good to see that LiveHire insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$80k worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership Of LiveHire
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. LiveHire insiders own about AU$5.2m worth of shares. That equates to 25% of the company. 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 LiveHire Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in LiveHire shares, given these transactions (along with notable insider ownership of the company). 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. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of LiveHire.