We wouldn't blame Lakeland Financial Corporation (NASDAQ:LKFN) shareholders if they were a little worried about the fact that Michael Kubacki, the Independent Chairman recently netted about US$1.1m selling shares at an average price of US$51.47. However, that sale only accounted for 8.6% of their holding, so arguably it doesn't say much about their conviction.
Lakeland Financial Insider Transactions Over The Last Year
In fact, the recent sale by Michael Kubacki was the biggest sale of Lakeland Financial shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$51.92. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 8.6% of Michael Kubacki's holding.
Happily, we note that in the last year insiders paid US$750k for 20.16k shares. But they sold 51.08k shares for US$2.5m. All up, insiders sold more shares in Lakeland Financial than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Insider Ownership of Lakeland Financial
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. Lakeland Financial insiders own about US$52m worth of shares. That equates to 4.0% of the company. 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 Lakeland Financial Insider Transactions Indicate?
The stark truth for Lakeland Financial is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lakeland Financial. Every company has risks, and we've spotted 2 warning signs for Lakeland Financial (of which 1 is a bit unpleasant!) you should know about.
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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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