Yahoo Finance Trade Alert: The Vice President of Technical Services Of Lucara Diamond Corp. (TSE:LUC), John Armstrong, Has Just Spent US$47k Buying Shares
Even if it's not a huge purchase, we think it was good to see that John Armstrong, the Vice President of Technical Services of Lucara Diamond Corp. (TSE:LUC) recently shelled out CA$47k to buy stock, at CA$0.67 per share. That purchase might not be huge but it did increase their holding by 48%.
See our latest analysis for Lucara Diamond
The Last 12 Months Of Insider Transactions At Lucara Diamond
Notably, that recent purchase by John Armstrong is the biggest insider purchase of Lucara Diamond shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of CA$0.60. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. John Armstrong was the only individual insider to buy over the year.
You can see a visual depiction of insider transactions (by 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!
Lucara Diamond is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Lucara Diamond insiders own about CA$9.1m worth of shares (which is 3.8% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Lucara Diamond Insider Transactions Indicate?
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Lucara Diamond insiders bought more shares in the company. 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. Case in point: We've spotted 1 warning sign for Lucara Diamond you should be aware of.
Of course Lucara Diamond 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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