Don't Ignore The Insider Selling In Landsea Homes

Some Landsea Homes Corporation (NASDAQ:LSEA) shareholders may be a little concerned to see that the Independent Director, Elias Farhat, recently sold a substantial US$724k worth of stock at a price of US$12.07 per share. That sale reduced their total holding by 19% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Landsea Homes

Landsea Homes Insider Transactions Over The Last Year

In fact, the recent sale by Elias Farhat was the biggest sale of Landsea Homes shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$11.99. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid US$1.4m for 118.88k shares. But they sold 112.34k shares for US$1.3m. Overall, Landsea Homes insiders were net buyers during 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Landsea Homes Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 5.9% of Landsea Homes shares, worth about US$26m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Landsea Homes Tell Us?

Insiders haven't bought Landsea Homes stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So we're happy enough to look past some selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Landsea Homes. To that end, you should learn about the 4 warning signs we've spotted with Landsea Homes (including 1 which is a bit concerning).

But note: Landsea Homes 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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