Lovisa Holdings Non-Executive Director Tracey Blundy Sells 43% Of Holding

Some Lovisa Holdings Limited (ASX:LOV) shareholders may be a little concerned to see that the Non-Executive Director, Tracey Blundy, recently sold a substantial AU$16m worth of stock at a price of AU$31.25 per share. That's a big disposal, and it decreased their holding size by 43%, which is notable but not too bad.

See our latest analysis for Lovisa Holdings

The Last 12 Months Of Insider Transactions At Lovisa Holdings

In fact, the recent sale by Tracey Blundy was the biggest sale of Lovisa Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of AU$32.44, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 43% of Tracey Blundy's stake.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Lovisa Holdings insiders own about AU$1.5b worth of shares (which is 43% of the company). 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?

An insider sold Lovisa Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Lovisa Holdings makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Lovisa Holdings has 1 warning sign and it would be unwise to ignore this.

Of course Lovisa Holdings 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.