Insiders Of Lesaka Technologies Reap Rewards After Their Investment Jumps Another US$503k

Last week, Lesaka Technologies, Inc. (NASDAQ:LSAK) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10% last week, resulting in a US$27m increase in the company's market worth, implying a 38% gain on their initial purchase. As a result, the stock they originally bought for US$1.33m is now worth US$1.84m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Lesaka Technologies

The Last 12 Months Of Insider Transactions At Lesaka Technologies

The Executive Chairman Ali Mazanderani made the biggest insider purchase in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$3.30 each. We do like to see buying, but this purchase was made at well below the current price of US$4.90. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Ali Mazanderani purchased 374.89k shares over the year. The average price per share was US$3.56. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Lesaka Technologies 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.

Insiders At Lesaka Technologies Have Sold Stock Recently

The last three months saw significant insider selling at Lesaka Technologies. In total, Non-Executive Director Christopher Meyer dumped US$496k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of Lesaka Technologies

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 4.2% of Lesaka Technologies shares, worth about US$12m. 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 Lesaka Technologies Insider Transactions Indicate?

An insider hasn't bought Lesaka Technologies stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So we're happy enough to look past some selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Lesaka Technologies you should be aware of.

Of course Lesaka Technologies 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.