Open Lending Gains 19%, Insider Trades Reap Benefit

Last week, Open Lending Corporation (NASDAQ:LPRO) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 19% last week, resulting in a US$34m increase in the company's market worth, implying a 12% gain on their initial purchase. As a result, their original purchase of US$85.8k worth of stock is now worth US$96.4k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Open Lending Insider Transactions Over The Last Year

Notably, that recent purchase by Matthew Sather is the biggest insider purchase of Open Lending shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of US$1.82. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Open Lending insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Open Lending

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Open Lending Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Open Lending. We can see that insider Matthew Sather paid US$61k for shares in the company. No-one sold. That shows some optimism about the company's future.

Does Open Lending Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$2.8m worth of Open Lending stock, about 1.3% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Open Lending Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Open Lending insiders are expecting a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: Open Lending 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.