Independent Non-Executive Director of LondonMetric Property Picks Up 200% More Stock

LondonMetric Property Plc (LON:LMP) shareholders (or potential shareholders) will be happy to see that the Independent Non-Executive Director, Katerina Patmore, recently bought a whopping UK£1.9m worth of stock, at a price of UK£192. That increased their holding by a full 200%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

Check out our latest analysis for LondonMetric Property

The Last 12 Months Of Insider Transactions At LondonMetric Property

Notably, that recent purchase by Katerina Patmore is the biggest insider purchase of LondonMetric Property shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of UK£1.93. 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. 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.

Happily, we note that in the last year insiders paid UK£2.0m for 76.47k shares. But insiders sold 618.16k shares worth UK£1.1m. Overall, LondonMetric Property insiders were net buyers during the last year. The average buy price was around UK£26.69. 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that LondonMetric Property insiders own 0.8% of the company, worth about UK£33m. 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 LondonMetric Property Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of LondonMetric Property we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that LondonMetric Property has 3 warning signs (2 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

But note: LondonMetric Property 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.