With Locality Planning Energy Holdings Up 76%, Insider Buyers Count Their Returns
Last week, Locality Planning Energy Holdings Limited (ASX:LPE) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 76% last week, resulting in a AU$4.5m increase in the company's market worth, implying a 13% gain on their initial purchase. As a result, the stock they originally bought for AU$173.3k is now worth AU$195.5k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Locality Planning Energy Holdings
The Last 12 Months Of Insider Transactions At Locality Planning Energy Holdings
The Non-Executive Director Stanislav Kolenc made the biggest insider purchase in the last 12 months. That single transaction was for AU$97k worth of shares at a price of AU$0.053 each. So it's clear an insider wanted to buy, at around the current price, which is AU$0.058. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Locality Planning Energy Holdings insiders decided to buy shares at close to current prices.
While Locality Planning Energy Holdings insiders bought shares during the last year, they didn't sell. 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!
Locality Planning Energy 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
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. Locality Planning Energy Holdings insiders own about AU$4.0m worth of shares. That equates to 39% 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.
So What Does This Data Suggest About Locality Planning Energy Holdings Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Locality Planning Energy Holdings and we see no evidence to suggest they are worried about the future. 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. Case in point: We've spotted 3 warning signs for Locality Planning Energy Holdings you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.
