Ming Tian Spends US$348k On Landsea Homes Stock
Investors who take an interest in Landsea Homes Corporation (NASDAQ:LSEA) should definitely note that the Chairman, Ming Tian, recently paid US$11.60 per share to buy US$348k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
Check out our latest analysis for Landsea Homes
The Last 12 Months Of Insider Transactions At Landsea Homes
In the last twelve months, the biggest single sale by an insider was when the insider, Xuefeng Bao, sold US$41m worth of shares at a price of US$9.75 per share. That means that an insider was selling shares at slightly below the current price (US$13.52). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 87% of Xuefeng Bao's stake.
In the last twelve months insiders purchased 137.84k shares for US$1.4m. But they sold 4.26m shares for US$42m. In total, Landsea Homes insiders sold more than they bought over the last year. The average sell price was around US$9.78. It's not particularly great to see insiders were selling shares at below recent prices. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does Landsea Homes Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Landsea Homes insiders own 5.1% of the company, worth about US$24m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Landsea Homes Insider Transactions Indicate?
It is good to see recent purchasing. However, the longer term transactions are not so encouraging. While recent transactions indicate confidence in Landsea Homes, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. In short they are likely aligned with shareholders. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Landsea Homes has 3 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.
But note: Landsea Homes 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 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.
