LendingTree, Inc. (NASDAQ:TREE) insider upped their holding earlier this year
Looking at LendingTree, Inc.'s (NASDAQ:TREE ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
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 LendingTree
The Last 12 Months Of Insider Transactions At LendingTree
Over the last year, we can see that the biggest insider sale was by the Founder, Douglas Lebda, for US$910k worth of shares, at about US$22.74 per share. That means that even when the share price was below the current price of US$23.23, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 2.2% of Douglas Lebda's holding.
Mark Ernst bought a total of 20.00k shares over the year at an average price of US$50.17. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
LendingTree 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.
Does LendingTree Boast High 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. Insiders own 16% of LendingTree shares, worth about US$49m. 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 LendingTree Tell Us?
It doesn't really mean much that no insider has traded LendingTree shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think LendingTree insiders are doubting the company, and they do own shares. 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 instance, we've identified 2 warning signs for LendingTree (1 is a bit concerning) you should be aware of.
Of course LendingTree 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.
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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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