President of Leggett & Platt Karl Glassman Buys 2.1% More Shares

Potential Leggett & Platt, Incorporated (NYSE:LEG) shareholders may wish to note that the President, Karl Glassman, recently bought US$273k worth of stock, paying US$11.48 for each share. Although the purchase only increased their holding by 2.1%, it is still a solid purchase in our view.

Check out our latest analysis for Leggett & Platt

Leggett & Platt Insider Transactions Over The Last Year

Notably, that recent purchase by Karl Glassman is the biggest insider purchase of Leggett & Platt shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$12.30. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Leggett & Platt insiders decided to buy shares at close to current prices.

In the last twelve months Leggett & Platt insiders were buying shares, but not selling. 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!

Leggett & Platt is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.0% of Leggett & Platt shares, worth about US$32m. 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 Does This Data Suggest About Leggett & Platt Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Leggett & Platt we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Leggett & Platt has 2 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

Of course Leggett & Platt may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.