Insider Buyers Lose AU$110k As Locality Planning Energy Holdings Sheds AU$1.6m

Insiders who acquired AU$463.5k worth of Locality Planning Energy Holdings Limited's (ASX:LPE) stock at an average price of AU$0.052 in the past 12 months may be dismayed by the recent 18% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$353.7k which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Locality Planning Energy Holdings

The Last 12 Months Of Insider Transactions At Locality Planning Energy Holdings

The insider Simons Brooklyn made the biggest insider purchase in the last 12 months. That single transaction was for AU$169k worth of shares at a price of AU$0.059 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.04). 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 generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Locality Planning Energy Holdings insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.052 on average. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Locality Planning Energy Holdings insiders own about AU$3.1m worth of shares (which is 44% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Locality Planning Energy Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Locality Planning Energy Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Locality Planning Energy Holdings insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Locality Planning Energy Holdings. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Locality Planning Energy Holdings.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.