We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in LendLease Group (ASX:LLC).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
LendLease Group Insider Transactions Over The Last Year
Group CEO Stephen McCann made the biggest insider sale in the last 12 months. That single transaction was for AU$6.0m worth of shares at a price of AU$20.42 each. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is AU$11.59. So it may not shed much light on insider confidence at current levels. Stephen McCann was the only individual insider to sell over the last year. Notably Stephen McCann was also the biggest buyer, having purchased AU$2.7m worth of shares.
In the last twelve months insiders purchased 192.13k shares for AU$2.7m. But they sold 589.50k for AU$11m. Stephen McCann divested 589.50k shares over the last 12 months at an average price of AU$18.90. You can see a visual depiction of insider transactions 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 growing companies that insiders are buying.
Insiders at LendLease Group Have Bought Stock Recently
Over the last quarter, LendLease Group insiders have spent a meaningful amount on shares. Overall, 5 insiders shelled out AU$2.2m for shares in the company — and none sold. This could be interpreted as suggesting a positive outlook.
Does LendLease Group Boast High Insider Ownership?
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. Insiders own 0.3% of LendLease Group shares, worth about AU$13m. Whilst better than nothing, we’re not overly impressed by these holdings.
So What Does This Data Suggest About LendLease Group Insiders?
It’s certainly positive to see the recent insider purchases. But we can’t say the same for the transactions over the last 12 months. The transactions over the last year don’t give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. Of course, the future is what matters most. So if you are interested in LendLease Group, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.