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 The Law Debenture Corporation p.l.c. (LON:LWDB), it sends a favourable message to the company's shareholders.
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.
View our latest analysis for Law Debenture
Law Debenture Insider Transactions Over The Last Year
The insider Mark Bridgeman made the biggest insider purchase in the last 12 months. That single transaction was for UK£112k worth of shares at a price of UK£7.47 each. That implies that an insider found the current price of UK£8.19 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Law Debenture share holders is that insiders were buying at near the current price.
In the last twelve months Law Debenture insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Law Debenture is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Law Debenture Boast High Insider Ownership?
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our information indicates that Law Debenture insiders own about UK£180k worth of shares. This level of insider ownership is notably low, and not very encouraging.
So What Does This Data Suggest About Law Debenture Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Law Debenture stock. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 4 warning signs for Law Debenture (3 are potentially serious!) and we strongly recommend you look at them before investing.
But note: Law Debenture may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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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