Yahoo Finance Insider Stock Buying Reaches US$1.98m On LuxUrban Hotels
Multiple insiders secured a larger position in LuxUrban Hotels Inc. (NASDAQ:LUXH) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for LuxUrban Hotels
LuxUrban Hotels Insider Transactions Over The Last Year
The Co-Founder & Director Brian Ferdinand made the biggest insider purchase in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$0.25 each. That means that an insider was happy to buy shares at above the current price of US$0.23. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Brian Ferdinand was also the biggest seller.
Happily, we note that in the last year insiders paid US$2.0m for 7.25m shares. But they sold 925.76k shares for US$744k. Overall, LuxUrban Hotels insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At LuxUrban Hotels Have Bought Stock Recently
There has been significantly more insider buying, than selling, at LuxUrban Hotels, over the last three months. Insiders spent US$1.8m on shares. On the other hand, Co-Founder & Director Brian Ferdinand netted US$175k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. LuxUrban Hotels insiders own about US$7.3m worth of shares. That equates to 39% 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 Does This Data Suggest About LuxUrban Hotels Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest LuxUrban Hotels insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 5 warning signs (3 are potentially serious!) that you ought to be aware of before buying any shares in LuxUrban Hotels.
Of course LuxUrban Hotels may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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