Yahoo Finance Limoneira Company (NASDAQ:LMNR) insider upped their holding by 11% earlier this year
Viewing insider transactions for Limoneira Company's (NASDAQ:LMNR ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
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.
Check out our latest analysis for Limoneira
The Last 12 Months Of Insider Transactions At Limoneira
In the last twelve months, the biggest single purchase by an insider was when Independent Director Jesus Loza bought US$528k worth of shares at a price of US$12.80 per share. That means that an insider was happy to buy shares at around the current price of US$13.83. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Limoneira insider decided to buy shares at close to current prices. Jesus Loza was the only individual insider to buy during the last year.
Jesus Loza purchased 96.60k shares over the year. The average price per share was US$14.21. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Limoneira Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Limoneira, over the last three months. In total, Independent Director Jesus Loza bought US$660k worth of shares in that time. But we did see insider selling worth US$282k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership of Limoneira
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 6.6% of Limoneira shares, worth about US$16m. 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 Limoneira Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Limoneira insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Limoneira has 2 warning signs and it would be unwise to ignore them.
Of course Limoneira may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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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.
