With Limbach Holdings Up 13%, Insider Buyers Count Their Returns

Limbach Holdings, Inc. (NASDAQ:LMB) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 13% resulting in a US$64m addition to the company’s market value. As a result, their original purchase of US$150.1k worth of stock is now worth US$219.1k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Limbach Holdings

The Last 12 Months Of Insider Transactions At Limbach Holdings

In the last twelve months, the biggest single purchase by an insider was when President Michael McCann bought US$102k worth of shares at a price of US$35.47 per share. We do like to see buying, but this purchase was made at well below the current price of US$51.39. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Limbach Holdings insiders bought shares during the last year, they didn't sell. 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!

Limbach Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Limbach Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 8.8% of Limbach Holdings shares, worth about US$47m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Limbach Holdings Insiders?

It doesn't really mean much that no insider has traded Limbach Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Limbach Holdings and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Limbach Holdings. You'd be interested to know, that we found 1 warning sign for Limbach Holdings and we suggest you have a look.

But note: Limbach Holdings 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.