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Lowe's Companies, Inc. (NYSE:LOW) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 6.3% resulting in a US$9.0b addition to the company’s market value. Put another way, the original US$997k acquisition is now worth US$1.4m.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Lowe's Companies Insider Transactions Over The Last Year
The Independent Director David Batchelder made the biggest insider purchase in the last 12 months. That single transaction was for US$997k worth of shares at a price of US$159 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$219. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
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!
Lowe's Companies 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 Lowe's Companies
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Lowe's Companies insiders own about US$84m worth of shares. That equates to 0.06% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Lowe's Companies Insiders?
The fact that there have been no Lowe's Companies insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Lowe's Companies insiders are doubting the company, and they do own shares. 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 help with this, we've discovered 2 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Lowe's Companies.
But note: Lowe's Companies 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.
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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