Yahoo Finance Patrick Elliott Bought 14% More Shares In Lynch Group Holdings
Whilst it may not be a huge deal, we thought it was good to see that the Lynch Group Holdings Limited (ASX:LGL) Non-Executive Chairman, Patrick Elliott, recently bought AU$101k worth of stock, for AU$1.77 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 14%.
View our latest analysis for Lynch Group Holdings
The Last 12 Months Of Insider Transactions At Lynch Group Holdings
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Peter Clare for AU$249k worth of shares, at about AU$2.26 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$1.72). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Lynch Group Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Lynch Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Lynch Group Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own AU$3.3m worth of Lynch Group Holdings stock, about 1.6% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Lynch Group Holdings Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Lynch Group Holdings insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Lynch Group Holdings you should be aware of.
Of course Lynch Group Holdings 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.
