Elliot Fullen Bought 131% More Shares In Lancaster Colony

Those following along with Lancaster Colony Corporation (NASDAQ:LANC) will no doubt be intrigued by the recent purchase of shares by Elliot Fullen, Independent Director of the company, who spent a stonking US$507k on stock at an average price of US$169. That increased their holding by a full 131%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

See our latest analysis for Lancaster Colony

Lancaster Colony Insider Transactions Over The Last Year

Notably, that recent purchase by Elliot Fullen is the biggest insider purchase of Lancaster Colony shares that we've seen in the last year. That implies that an insider found the current price of US$171 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Lancaster Colony insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 3.08k shares worth US$522k. But they sold 1.21k shares for US$233k. In the last twelve months there was more buying than selling by Lancaster Colony insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Lancaster Colony 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

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. It's great to see that Lancaster Colony insiders own 26% of the company, worth about US$1.2b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Lancaster Colony Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Lancaster Colony insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Lancaster Colony.

But note: Lancaster Colony 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.