Insider Buying: Alexander Waislitz Just Spent AU$100k On Little Green Pharma Ltd (ASX:LGP) Shares
Whilst it may not be a huge deal, we thought it was good to see that Alexander Waislitz, who is a company insider, recently bought AU$100k worth of stock, for AU$0.18 per share. That purchase might not be huge but it did increase their holding by 48%.
View our latest analysis for Little Green Pharma
The Last 12 Months Of Insider Transactions At Little Green Pharma
In fact, the recent purchase by insider Alexander Waislitz was not their only acquisition of Little Green Pharma shares this year. Earlier in the year, they paid AU$0.20 per share in a AU$100k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.18). 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Alexander Waislitz was the only individual insider to buy during the last year. We note that Alexander Waislitz was also the biggest seller.
Alexander Waislitz bought 1.26m shares over the last 12 months at an average price of AU$0.19. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Little Green Pharma 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. We usually like to see fairly high levels of insider ownership. It appears that Little Green Pharma insiders own 16% of the company, worth about AU$8.0m. 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 Do The Little Green Pharma Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. 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. Given that insiders also own a fair bit of Little Green Pharma we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Little Green Pharma (1 is concerning!) that we believe deserve your full attention.
But note: Little Green Pharma 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.
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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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