This Insider Has Just Sold Shares In Lifeway Foods

Some Lifeway Foods, Inc. (NASDAQ:LWAY) shareholders may be a little concerned to see that insider Ludmila Smolyansky recently sold a substantial US$745k worth of stock at a price of US$18.82 per share. However, that sale only accounted for 3.5% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Lifeway Foods

Lifeway Foods Insider Transactions Over The Last Year

Notably, that recent sale by Ludmila Smolyansky is the biggest insider sale of Lifeway Foods shares that we've seen in the last year. That means that even when the share price was below the current price of US$20.91, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 3.5% of Ludmila Smolyansky's holding.

Insiders in Lifeway Foods didn't buy any shares in the last year. 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!

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Does Lifeway Foods Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Lifeway Foods insiders own 41% of the company, worth about US$120m. 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 Lifeway Foods Insider Transactions Indicate?

Insiders haven't bought Lifeway Foods stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Lifeway Foods is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. Be aware that Lifeway Foods is showing 2 warning signs in our investment analysis, and 1 of those can't be ignored...

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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.