Insiders who purchased Latitude Group Holdings Limited (ASX:LFS) earlier this year lose an additional AU$75k as the stock sinks to AU$1.64
Insiders who bought AU$461k worth of Latitude Group Holdings Limited's (ASX:LFS) stock at an average buy price of AU$1.96 over the last year may be disappointed by the recent 9.4% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth AU$385k, which is not what they expected.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Latitude Group Holdings
The Last 12 Months Of Insider Transactions At Latitude Group Holdings
Over the last year, we can see that the biggest insider purchase was by MD, CEO & Director A. Fahour for AU$400k worth of shares, at about AU$2.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$1.64). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. A. Fahour was the only individual insider to buy shares in the last twelve months.
A. Fahour purchased 235.00k shares over the year. The average price per share was AU$1.96. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Latitude Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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 appears that Latitude Group Holdings insiders own 3.1% of the company, worth about AU$53m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Latitude Group Holdings Tell Us?
It doesn't really mean much that no insider has traded Latitude Group Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Latitude Group Holdings 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. Every company has risks, and we've spotted 3 warning signs for Latitude Group Holdings (of which 1 is significant!) you should know about.
But note: Latitude Group Holdings 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.
