Despite recent gains, Limeade, Inc. (ASX:LME) insiders are still down US$40k after purchasing last year

Some of the losses seen by insiders who purchased US$169k worth of Limeade, Inc. (ASX:LME) shares over the past year were recovered after the stock increased by 11% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$40k.

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

Check out our latest analysis for Limeade

The Last 12 Months Of Insider Transactions At Limeade

Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Deven Billimoria for AU$122k worth of shares, at about AU$0.79 per share. That means that even when the share price was higher than AU$0.45 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Deven Billimoria was the only individual insider to buy shares in the last twelve months.

Deven Billimoria bought a total of 286.94k shares over the year at an average price of AU$0.59. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Limeade is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Limeade

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. Limeade insiders own about AU$29m worth of shares. That equates to 25% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Limeade Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Limeade and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 4 warning signs with Limeade and understanding these should be part of your investment process.

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.

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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.