Yahoo Finance One LightInTheBox Holding Co., Ltd. (NYSE:LITB) insider upped their stake by 163% in the previous year
Looking at LightInTheBox Holding Co., Ltd.'s (NYSE:LITB ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for LightInTheBox Holding
LightInTheBox Holding Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO & Director Jian He for US$2.1m worth of shares, at about US$1.25 per share. That means that an insider was happy to buy shares at above the current price of US$1.20. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Jian He was the only individual insider to buy during the last year.
Jian He purchased 1.82m shares over the year. The average price per share was US$1.24. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
LightInTheBox Holding 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.
Insider Ownership Of LightInTheBox Holding
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 23% of LightInTheBox Holding shares, worth about US$31m. 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 LightInTheBox Holding Insider Transactions Indicate?
It doesn't really mean much that no insider has traded LightInTheBox Holding shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in LightInTheBox Holding and we see no evidence to suggest they are worried about the 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. While conducting our analysis, we found that LightInTheBox Holding has 3 warning signs and it would be unwise to ignore these.
But note: LightInTheBox Holding 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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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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