LCI Industries (NYSE:LCII) insiders placed bullish bets worth US$2.6m in the last 12 months
Multiple insiders secured a larger position in LCI Industries (NYSE:LCII) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for LCI Industries
The Last 12 Months Of Insider Transactions At LCI Industries
The Independent Director James Gero 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$106 each. That implies that an insider found the current price of US$113 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for LCI Industries share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 24.27k shares worth US$2.6m. But insiders sold 3.76k shares worth US$441k. In the last twelve months there was more buying than selling by LCI Industries insiders. 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!
LCI Industries is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. LCI Industries insiders own about US$89m worth of shares. That equates to 3.1% of the company. 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 LCI Industries Tell Us?
The fact that there have been no LCI Industries insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in LCI Industries and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing LCI Industries. Case in point: We've spotted 3 warning signs for LCI Industries you should be aware of, and 1 of them doesn't sit too well with us.
But note: LCI Industries 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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