Even if it's not a huge purchase, we think it was good to see that Richard Holmes, the Independent Non Executive Director of Lok'nStore Group Plc (LON:LOK) recently shelled out UK£60k to buy stock, at UK£6.26 per share. Although the purchase is not a big one, increasing their shareholding by only 3.3%, it can be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Lok'nStore Group
In fact, the recent purchase by Richard Holmes was the biggest purchase of Lok'nStore Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of UK£6.28. Of course they may have changed their mind. But this suggests they are optimistic. 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.
Happily, we note that in the last year insiders paid UK£193k for 31.82k shares. On the other hand they divested 5.00k shares, for UK£28k. In the last twelve months there was more buying than selling by Lok'nStore Group 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 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 of Lok'nStore Group
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Lok'nStore Group insiders own 28% of the company, worth about UK£50m. 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 Does This Data Suggest About Lok'nStore Group Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Lok'nStore Group we think they are probably pretty confident of a bright 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. Our analysis shows 2 warning signs for Lok'nStore Group (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.
But note: Lok'nStore Group 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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