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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Legacy Housing Corporation's (NASDAQ:LEGH) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Legacy Housing
The Last 12 Months Of Insider Transactions At Legacy Housing
Over the last year, we can see that the biggest insider purchase was by Independent Director Jeffrey Stouder for US$103k worth of shares, at about US$21.11 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$27.79. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months Legacy Housing insiders were buying shares, but not selling. 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!
Legacy Housing is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Legacy Housing Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Legacy Housing insiders own 53% of the company, currently worth about US$354m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Legacy Housing Tell Us?
It doesn't really mean much that no insider has traded Legacy Housing shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Legacy Housing insiders think the business has merit. Of course, the future is what matters most. So if you are interested in Legacy Housing, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.