Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Lefroy Exploration Limited (ASX:LEX), it sends a favourable message to the company's shareholders.

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 Lefroy Exploration

The Last 12 Months Of Insider Transactions At Lefroy Exploration

The Non-Executive Director Michael Macgregor Davies made the biggest insider purchase in the last 12 months. That single transaction was for AU$300k worth of shares at a price of AU$0.16 each. That means that an insider was happy to buy shares at above the current price of AU$0.071. 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. 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.

Lefroy Exploration insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.14 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Lefroy Exploration

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Lefroy Exploration insiders own 17% of the company, worth about AU$2.9m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Lefroy Exploration Tell Us?

It doesn't really mean much that no insider has traded Lefroy Exploration shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Lefroy Exploration and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lefroy Exploration. When we did our research, we found 4 warning signs for Lefroy Exploration (2 make us uncomfortable!) that we believe deserve your full attention.