Lightspeed Commerce Insiders Placed Bullish Bets Worth US$26.4m

Quite a few insiders have dramatically grown their holdings in Lightspeed Commerce Inc. (TSE:LSPD) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Lightspeed Commerce

The Last 12 Months Of Insider Transactions At Lightspeed Commerce

The Founder Dax Dasilva made the biggest insider purchase in the last 12 months. That single transaction was for CA$26m worth of shares at a price of CA$20.85 each. So it's clear an insider wanted to buy, at around the current price, which is CA$22.73. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. The good news for Lightspeed Commerce share holders is that insiders were buying at near the current price. We note that Dax Dasilva was both the biggest buyer and the biggest seller.

In the last twelve months insiders purchased 1.27m shares for CA$26m. But they sold 1.26m shares for CA$26m. In the last twelve months there was more buying than selling by Lightspeed Commerce insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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.

Insider Ownership Of Lightspeed Commerce

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Lightspeed Commerce insiders own 9.5% of the company, worth about CA$328m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Lightspeed Commerce Insider Transactions Indicate?

The fact that there have been no Lightspeed Commerce insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Lightspeed Commerce insiders feel good about the company's future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Lightspeed Commerce you should know about.

Of course Lightspeed Commerce 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 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.