How Many Insiders Sold LKQ Corporation (NASDAQ:LKQ) Shares?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in LKQ Corporation (NASDAQ:LKQ).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
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LKQ Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Justin Jude for US$691k worth of shares, at about US$32.26 per share. That is hardly a positive sign, even though it took place above the latest price (US$26.25). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Justin Jude.
Happily, we note that in the last year insiders paid US$301k for 9.78k shares. But they sold 21.43k for US$691k. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
LKQ 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.
Insiders at LKQ Have Bought Stock Recently
It’s good to see that LKQ insiders have made notable investments in the company’s shares. In total, insiders bought US$80k worth of shares in that time, and we didn’t record any sales whatsoever. This makes one think the business has some good points.
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. LKQ insiders own about US$74m worth of shares. That equates to 0.9% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The LKQ Insider Transactions Indicate?
It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn’t so positive. We don’t take much heart from transactions by LKQ insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
