Some Lithia Motors, Inc. (NYSE:LAD) shareholders may be a little concerned to see that the Director, Kenneth Roberts, recently sold a whopping US$656k worth of stock at a price of US$131 per share. However, it’s crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.8%.
The Last 12 Months Of Insider Transactions At Lithia Motors
Over the last year, we can see that the biggest insider sale was by the CEO, President & Director, Bryan DeBoer, for US$2.5m worth of shares, at about US$89.83 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$132. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. We note that the biggest single sale was only 17.9% of Bryan DeBoer’s holding.
In the last twelve months insiders netted US$5.6m for 54998 shares sold. Lithia Motors insiders didn’t buy any shares over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Insider Ownership of Lithia Motors
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Lithia Motors insiders own about US$75m worth of shares. That equates to 2.5% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Lithia Motors Tell Us?
Insiders sold Lithia Motors shares recently, but they didn’t buy any. Looking to the last twelve months, our data doesn’t show any insider buying. On the plus side, Lithia Motors makes money, and is growing profits. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’d think twice before buying! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Lithia Motors.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.