Are Insiders Buying Loral Space & Communications Inc. (NASDAQ:LORL) Stock?
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Loral Space & Communications Inc. (NASDAQ:LORL).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
See our latest analysis for Loral Space & Communications
The Last 12 Months Of Insider Transactions At Loral Space & Communications
The insider, Mario Gabelli, made the biggest insider sale in the last 12 months. That single transaction was for US$202k worth of shares at a price of US$17.46 each. That means that an insider was selling shares at slightly below the current price (US$20.67). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 28% of Mario Gabelli's stake. The only individual insider seller over the last year was Mario Gabelli. Notably Mario Gabelli was also the biggest buyer, having purchased US$335k worth of shares.
Mario Gabelli purchased 15.80k shares over the year. The average price per share was US$21.22. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 Loral Space & Communications 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. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$4.2m worth of Loral Space & Communications stock, about 0.7% of the company. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Loral Space & Communications Tell Us?
It doesn't really mean much that no insider has traded Loral Space & Communications shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Loral Space & Communications insiders bought more shares in the company. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course Loral Space & Communications may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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. 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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