Yahoo Finance Positive Signs As Multiple Insiders Buy LifeSpeak Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in LifeSpeak Inc.'s (TSE:LSPK) instance, it's good news for shareholders.
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 LifeSpeak
The Last 12 Months Of Insider Transactions At LifeSpeak
In the last twelve months, the biggest single purchase by an insider was when Founder Michael Held bought CA$67k worth of shares at a price of CA$0.56 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.63. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months LifeSpeak insiders were buying shares, but not selling. Their average price was about CA$0.50. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
LifeSpeak is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At LifeSpeak Have Bought Stock Recently
It's good to see that LifeSpeak insiders have made notable investments in the company's shares. Overall, three insiders shelled out CA$258k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership Of LifeSpeak
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. LifeSpeak insiders own about CA$9.9m worth of shares. That equates to 31% 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 LifeSpeak Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest LifeSpeak insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of LifeSpeak.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
