Bullish Lightspeed Commerce Insiders Loaded Up On US$26.4m Of Stock

Over the last year, a good number of insiders have significantly increased their holdings in Lightspeed Commerce Inc. (TSE:LSPD). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

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.

See our latest analysis for Lightspeed Commerce

Lightspeed Commerce Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Founder Dax Dasilva for CA$26m worth of shares, at about CA$20.85 per share. That means that an insider was happy to buy shares at above the current price of CA$17.86. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Notably Dax Dasilva was also the biggest seller.

Happily, we note that in the last year insiders paid CA$26m for 1.27m shares. But they sold 1.26m shares for CA$26m. In the last twelve months there was more buying than selling by Lightspeed Commerce insiders. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Lightspeed Commerce Insiders Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Lightspeed Commerce. In fact, two insiders bought CA$26m worth of shares. On the other hand, Founder Dax Dasilva netted CA$26m by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership Of Lightspeed Commerce

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. Lightspeed Commerce insiders own about CA$257m worth of shares (which is 9.5% 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 Lightspeed Commerce Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Lightspeed Commerce. Nice! While it's good to be aware of 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. You'd be interested to know, that we found 1 warning sign for Lightspeed Commerce and we suggest you have a look.

But note: Lightspeed Commerce 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 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.