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Bullish Lightspeed Commerce Insiders Loaded Up On US$26.4m Of Stock

In the last year, multiple insiders have substantially increased their holdings of Lightspeed Commerce Inc. (TSE:LSPD) stock, indicating that insiders' optimism about the company's prospects has increased.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Lightspeed Commerce

Lightspeed Commerce Insider Transactions Over The Last Year

Notably, that recent purchase by Dax Dasilva is the biggest insider purchase of Lightspeed Commerce shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$20.17). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Notably Dax Dasilva was also the biggest seller.

In the last twelve months insiders purchased 1.27m shares for CA$26m. On the other hand they divested 1.26m shares, for CA$26m. In the last twelve months there was more buying than selling by Lightspeed Commerce insiders. 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!

insider-trading-volume
insider-trading-volume

Lightspeed Commerce is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Lightspeed Commerce Insiders Bought Stock Recently

At Lightspeed Commerce,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, two insiders bought CA$26m worth of shares in that time. But Founder Dax Dasilva sold shares worth CA$26m. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership Of Lightspeed Commerce

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. We usually like to see fairly high levels of insider ownership. Lightspeed Commerce insiders own 9.4% of the company, currently worth about CA$294m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Lightspeed Commerce Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Lightspeed Commerce insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Lightspeed Commerce and we suggest you have a look.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com