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The Independent Director of The L.S. Starrett Company (NYSE:SCX), Thomas Riordan, Just Bought 360% More Shares

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Simply Wall St
·3 min read
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Potential The L.S. Starrett Company (NYSE:SCX) shareholders may wish to note that the Independent Director, Thomas Riordan, recently bought US$139k worth of stock, paying US$4.62 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 360%, potentially signalling some real optimism.

View our latest analysis for L.S. Starrett

L.S. Starrett Insider Transactions Over The Last Year

Notably, that recent purchase by Thomas Riordan is the biggest insider purchase of L.S. Starrett shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.54). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

L.S. Starrett insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:SCX Recent Insider Trading, March 15th 2020
NYSE:SCX Recent Insider Trading, March 15th 2020

L.S. Starrett is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does L.S. Starrett Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests L.S. Starrett insiders own 3.0% of the company, worth about US$778k. We consider this fairly low insider ownership.

So What Do The L.S. Starrett Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on L.S. Starrett stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of L.S. Starrett.

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.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.