LBT Innovations Falls To AU$0.015, But Insiders Sold At Lower Price

LBT Innovations Limited's (ASX:LBT) value has fallen 15% in the last week, but insiders who sold AU$138k worth of stock over the last year have had less success. The average selling price of AU$0.017 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

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.

Check out our latest analysis for LBT Innovations

The Last 12 Months Of Insider Transactions At LBT Innovations

In fact, the recent sale by Brenton Barnes was the biggest sale of LBT Innovations shares made by an insider individual in the last twelve months, according to our records. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (AU$0.015). So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 18.81m shares for AU$104k. But insiders sold 7.94m shares worth AU$138k. All up, insiders sold more shares in LBT Innovations than they bought, over the last year. The average sell price was around AU$0.017. We are not joyful about insider selling. But the selling was at much higher prices than the current share price (AU$0.015), so it probably doesn't tell us a lot about the value on offer today. 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!

I will like LBT Innovations better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At LBT Innovations Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at LBT Innovations. Specifically, CEO, MD & Director Brenton Barnes ditched AU$124k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does LBT Innovations Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that LBT Innovations insiders own about AU$3.0m worth of shares (which is 13% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About LBT Innovations Insiders?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, LBT Innovations has 7 warning signs (and 4 which don't sit too well with us) we think you should know about.

Of course LBT Innovations 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.