Anyone interested in The Lovesac Company (NASDAQ:LOVE) should probably be aware that the Founder, Shawn Nelson, recently divested US$161k worth of shares in the company, at an average price of US$26.85 each. On the bright side, that sale was only 2.5% of their holding, so we doubt it’s very meaningful, on its own.
Lovesac Insider Transactions Over The Last Year
The Chairman of the Board Andrew Heyer made the biggest insider purchase in the last 12 months. That single transaction was for US$256k worth of shares at a price of US$12.99 each. Even though the purchase was made at a significantly lower price than the recent price (US$24.60), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid US$598k for 43.78k shares. But insiders sold 6.00k shares worth US$161k. In the last twelve months there was more buying than selling by Lovesac insiders. 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Lovesac
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Lovesac insiders own about US$15m worth of shares. That equates to 4.1% 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 Lovesac Tell Us?
An insider hasn’t bought Lovesac stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So we’re happy enough to look past some selling. 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. To assist with this, we’ve discovered 2 warning signs that you should run your eye over to get a better picture of Lovesac.
Of course Lovesac 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, but not derivative transactions.
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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. 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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