Yahoo Finance Insider Buying: The Louisiana-Pacific Corporation (NYSE:LPX) Independent Director Just Bought 105% More Shares
Potential Louisiana-Pacific Corporation (NYSE:LPX) shareholders may wish to note that the Independent Director, Stephen Macadam, recently bought US$105k worth of stock, paying US$20.96 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 105%, potentially signalling some real optimism.
View our latest analysis for Louisiana-Pacific
Louisiana-Pacific Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Chairman of the Board, E. Cook, for US$300k worth of shares, at about US$29.95 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$21.90. So it may not tell us anything about how insiders feel about the current share price. E. Cook was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid US$314k for 12.35k shares. But they sold 10000 shares for US$300k. Overall, Louisiana-Pacific insiders were net buyers during the last year. The average buy price was around US$25.40. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Louisiana-Pacific is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Louisiana-Pacific 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.5% of Louisiana-Pacific shares, worth about US$11m. 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 Does This Data Suggest About Louisiana-Pacific Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Louisiana-Pacific 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. While conducting our analysis, we found that Louisiana-Pacific has 5 warning signs and it would be unwise to ignore them.
But note: Louisiana-Pacific may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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