Lakeland Financial Insiders Added US$3.98m Of Stock To Their Holdings
In the last year, multiple insiders have substantially increased their holdings of Lakeland Financial Corporation (NASDAQ:LKFN) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Lakeland Financial
The Last 12 Months Of Insider Transactions At Lakeland Financial
The Independent Director M. Welch made the biggest insider purchase in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$64.31 each. That means that even when the share price was higher than US$48.31 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
Happily, we note that in the last year insiders paid US$4.0m for 71.64k shares. But they sold 13.97k shares for US$1.0m. Overall, Lakeland Financial insiders were net buyers during the last year. They paid about US$55.51 on average. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Lakeland Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Lakeland Financial Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Lakeland Financial. Overall, three insiders shelled out US$724k for shares in the company -- and none sold. This makes one think the business has some good points.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Lakeland Financial insiders own about US$43m worth of shares. That equates to 3.5% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Lakeland Financial Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Lakeland Financial shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Lakeland Financial has 1 warning sign we think you should be aware of.
Of course Lakeland Financial 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 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.
