Have Insiders Been Selling LiveTiles Limited (ASX:LVT) Shares This Year?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 before you buy or sell LiveTiles Limited ( ASX:LVT ), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

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 would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for LiveTiles

The Last 12 Months Of Insider Transactions At LiveTiles

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Karl Redenbach, for AU$3.0m worth of shares, at about AU$0.26 per share. So we know that an insider sold shares at around the present share price of AU$0.23. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad. It should be noted in this case that the shares were transferred as part of a legal settlement, so Mr Redenbach did not net any cash from the transaction.

In the last year LiveTiles insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does LiveTiles Boast High 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. It appears that LiveTiles insiders own 27% of the company, worth about AU$52m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At LiveTiles Tell Us?

The fact that there have been no LiveTiles insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by LiveTiles insiders. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing LiveTiles. Our analysis shows 3 warning signs for LiveTiles (2 make us uncomfortable!) and we strongly recommend you look at these before investing.

But note: LiveTiles may not be the best stock to buy . So take a peek at this free list of interesting companies with high ROE and low debt.

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. 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.
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