Insider Buying: The Limoneira Company (NASDAQ:LMNR) Independent Director Just Bought 17% More Shares

By
Simply Wall St
Published
March 17, 2022
NasdaqGS:LMNR
Source: Shutterstock

Limoneira Company (NASDAQ:LMNR) shareholders (or potential shareholders) will be happy to see that the Independent Director, Jesus Loza, recently bought a whopping US$801k worth of stock, at a price of US$12.79. Not only is that a big swing, but it increased their holding size by 17%, which is definitely great to see.

See our latest analysis for Limoneira

The Last 12 Months Of Insider Transactions At Limoneira

Notably, that recent purchase by Jesus Loza is the biggest insider purchase of Limoneira 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$13.49. 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. The good news for Limoneira share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Jesus Loza.

Jesus Loza bought a total of 160.46k shares over the year at an average price of US$14.73. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:LMNR Insider Trading Volume March 17th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Limoneira

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Limoneira insiders own about US$15m worth of shares. That equates to 6.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Limoneira Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Limoneira insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Limoneira. For example - Limoneira has 2 warning signs we think you should be aware of.

Of course Limoneira 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, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.