Lovesac Chairman of the Board Acquires 6.9% More Stock

Investors who take an interest in The Lovesac Company (NASDAQ:LOVE) should definitely note that the Chairman of the Board, Andrew Heyer, recently paid US$19.72 per share to buy US$434k worth of the stock. Although the purchase only increased their holding by 6.9%, it is still a solid purchase in our view.

View our latest analysis for Lovesac

Lovesac Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Founder, Shawn Nelson, for US$469k worth of shares, at about US$24.84 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$21.85. So it may not tell us anything about how insiders feel about the current share price. Shawn Nelson was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 39.67k shares for US$852k. But insiders sold 25.00k shares worth US$604k. Overall, Lovesac insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Lovesac is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Lovesac insiders own about US$21m worth of shares. That equates to 6.2% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Lovesac Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Lovesac shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Lovesac, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.