Insider Buying: Lighthouse Properties Non-Independent Non-Executive Director Bought €14m Of Shares
Those following along with Lighthouse Properties plc (JSE:LTE) will no doubt be intrigued by the recent purchase of shares by Desmond de Beer, Non-Independent Non-Executive Director of the company, who spent a stonking R14m on stock at an average price of R5.40. While that only increased their holding size by 0.9%, it is still a big swing by our standards.
Check out our latest analysis for Lighthouse Properties
The Last 12 Months Of Insider Transactions At Lighthouse Properties
In fact, the recent purchase by Non-Independent Non-Executive Director Desmond de Beer was not their only acquisition of Lighthouse Properties shares this year. They previously made an even bigger purchase of R17m worth of shares at a price of R5.36 per share. That means that an insider was happy to buy shares at around the current price of R5.40. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
While Lighthouse Properties 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!
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 Lighthouse Properties Boast High Insider Ownership?
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. It's great to see that Lighthouse Properties insiders own 28% of the company, worth about R2.5b. 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 Does This Data Suggest About Lighthouse Properties Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Lighthouse Properties. That's what I like to see! 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. Every company has risks, and we've spotted 4 warning signs for Lighthouse Properties (of which 2 are significant!) you should know about.
But note: Lighthouse Properties 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
