Lendlease Group Insiders Placed Bullish Bets Worth AU$1.55m

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Lendlease Group (ASX:LLC), that sends out a positive message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Lendlease Group

Lendlease Group Insider Transactions Over The Last Year

In fact, the recent purchase by David Craig was the biggest purchase of Lendlease Group shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$5.69 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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 Lendlease Group share holders is that insiders were buying at near the current price. We note that David Craig was also the biggest seller.

Happily, we note that in the last year insiders paid AU$1.5m for 250.13k shares. But insiders sold 83.13k shares worth AU$450k. In the last twelve months there was more buying than selling by Lendlease Group insiders. They paid about AU$6.19 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Lendlease Group Insiders Bought Stock Recently

At Lendlease Group,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, three insiders bought AU$832k worth of shares in that time. On the other hand, Independent Non-Executive Director David Craig netted AU$450k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership Of Lendlease Group

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Lendlease Group insiders own about AU$9.0m worth of shares (which is 0.2% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Lendlease Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Lendlease Group insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Lendlease Group and understanding them should be part of your investment process.

Of course Lendlease Group 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com