Lifestyle Communities Independent Non Executive Chair Acquires 290% More Stock

Potential Lifestyle Communities Limited (ASX:LIC) shareholders may wish to note that the Independent Non Executive Chair, David Blight, recently bought AU$330k worth of stock, paying AU$8.87 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 290%, potentially signalling some real optimism.

View our latest analysis for Lifestyle Communities

The Last 12 Months Of Insider Transactions At Lifestyle Communities

Over the last year, we can see that the biggest insider purchase was by Founder James Kelly for AU$10.0m worth of shares, at about AU$16.00 per share. That means that even when the share price was higher than AU$9.00 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.

In the last twelve months Lifestyle Communities insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Lifestyle Communities Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 6.5% of Lifestyle Communities shares, worth about AU$70m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Lifestyle Communities Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Lifestyle Communities shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lifestyle Communities. While conducting our analysis, we found that Lifestyle Communities has 3 warning signs and it would be unwise to ignore these.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.