Stock Analysis

Lovisa Holdings Limited (ASX:LOV) insiders are undoubtedly delighted they bought last year with gains to date at AU$149k

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Insiders who bought Lovisa Holdings Limited (ASX:LOV) stock lover the last 12 months are probably not as affected by last week’s 5.5% loss. After taking the recent loss into consideration, the AU$1.4m worth of stock they bought is now worth AU$1.5m, indicating that their investment yielded a positive return.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

However if you'd rather see where the opportunities and risks are within LOV's industry, you can check out our analysis on the AU Specialty Retail industry.

Lovisa Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO & Director Victor Herrero for AU$998k worth of shares, at about AU$20.03 per share. That means that an insider was happy to buy shares at around the current price of AU$21.99. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months Lovisa Holdings 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

ASX:LOV Insider Trading Volume September 29th 2022

Lovisa Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Lovisa Holdings

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Lovisa Holdings insiders own 43% of the company, currently worth about AU$1.0b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Lovisa Holdings Insider Transactions Indicate?

The fact that there have been no Lovisa Holdings insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Lovisa Holdings insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lovisa Holdings. Case in point: We've spotted 1 warning sign for Lovisa Holdings you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Valuation is complex, but we're helping make it simple.

Find out whether Lovisa Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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Lovisa Holdings

Lovisa Holdings Limited engages in the retail sale of fashion jewelry and accessories.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Future Growth4
Past Performance6
Financial Health3

Read more about these checks in the individual report sections or in our analysis model.

Outstanding track record with reasonable growth potential.