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Leon's Furniture Limited (TSE:LNF) insiders placed bullish bets worth CA$4.0m in the last 12 months

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Multiple insiders secured a larger position in Leon's Furniture Limited (TSE:LNF) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Leon's Furniture

The Last 12 Months Of Insider Transactions At Leon's Furniture

Over the last year, we can see that the biggest insider purchase was by Vice-President of Operations at The Brick Ltd Daniel Leon for CA$1.7m worth of shares, at about CA$16.50 per share. That means that an insider was happy to buy shares at around the current price of CA$16.66. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Leon's Furniture share holders is that insiders were buying at near the current price.

Happily, we note that in the last year insiders paid CA$4.0m for 241.68k shares. On the other hand they divested 13.65k shares, for CA$335k. In the last twelve months there was more buying than selling by Leon's Furniture insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders at Leon's Furniture Have Bought Stock Recently

Over the last quarter, Leon's Furniture insiders have spent a meaningful amount on shares. Overall, six insiders shelled out CA$3.8m for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership of Leon's Furniture

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Leon's Furniture insiders own about CA$62m worth of shares. That equates to 5.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Leon's Furniture Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Leon's Furniture we think they are probably pretty confident of a bright future. 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. Case in point: We've spotted 2 warning signs for Leon's Furniture you should be aware of.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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