Richard Fearon of LSI Industries Inc. (NASDAQ:LYTS) Just Spent US$1.2m On Shares
LSI Industries Inc. (NASDAQ:LYTS) shareholders (or potential shareholders) will be happy to see that insider Richard Fearon recently bought a whopping US$1.2m worth of stock, at a price of US$8.16. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 29%.
See our latest analysis for LSI Industries
LSI Industries Insider Transactions Over The Last Year
In fact, the recent purchase by Richard Fearon was the biggest purchase of LSI Industries shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$7.72). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Richard Fearon was the only individual insider to buy during the last year.
Richard Fearon purchased 256.48k shares over the year. The average price per share was US$8.16. 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!
LSI Industries is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does LSI Industries 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. We usually like to see fairly high levels of insider ownership. It appears that LSI Industries insiders own 5.1% of the company, worth about US$11m. 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 LSI Industries Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest LSI Industries insiders are well aligned, and that they may think the share price is too low. 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. For example - LSI Industries has 4 warning signs we think 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, but not derivative transactions.
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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