Investors who take an interest in Leon’s Furniture Limited (TSE:LNF) should definitely note that the Vice Chairman, Terrence Leon, recently paid CA$15.25 per share to buy CA$153k worth of the stock. While that’s a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1%.
The Last 12 Months Of Insider Transactions At Leon’s Furniture
Notably, that recent purchase by Terrence Leon is the biggest insider purchase of Leon’s Furniture shares that we’ve seen in the last year. That means that an insider was happy to buy shares at around the current price of CA$15.72. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. In this case we’re pleased to report that the insider purchases were made at close to current prices. We note that Terrence Leon was also the biggest seller.
Happily, we note that in the last year insiders paid CA$629k for 41400 shares. But they sold 12500 for CA$189k. Overall, Leon’s Furniture insiders were net buyers last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Insider Ownership of Leon’s Furniture
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.5% of Leon’s Furniture shares, worth about CA$43m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Leon’s Furniture Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Leon’s Furniture insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Leon’s Furniture 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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.