Bullish Lancaster Colony Corporation (NASDAQ:LANC) insiders were rewarded last week as their US$597k investment inflated to US$724k
Last week, Lancaster Colony Corporation (NASDAQ:LANC) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 5.3% last week, resulting in a US$251m increase in the company's market worth. As a result, their original purchase of US$597k worth of stock is now worth US$724k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Lancaster Colony
The Last 12 Months Of Insider Transactions At Lancaster Colony
In the last twelve months, the biggest single purchase by an insider was when Lead Independent Director Alan Harris bought US$500k worth of shares at a price of US$156 per share. Even though the purchase was made at a significantly lower price than the recent price (US$181), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Lancaster Colony insiders bought shares during the last year, they didn't sell. 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!
Lancaster Colony is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Lancaster Colony
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. Lancaster Colony insiders own about US$1.3b worth of shares (which is 27% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Lancaster Colony Insider Transactions Indicate?
The fact that there have been no Lancaster Colony insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Lancaster Colony insiders think the business has merit. 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. Be aware that Lancaster Colony is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored...
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, 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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