Paul Josephs Bought 3.1% More Shares In Lifecore Biomedical

Whilst it may not be a huge deal, we thought it was good to see that the Lifecore Biomedical, Inc. (NASDAQ:LFCR) President, Paul Josephs, recently bought US$98k worth of stock, for US$5.74 per share. Although the purchase is not a big one, increasing their shareholding by only 3.1%, it can be interpreted as a good sign.

Check out our latest analysis for Lifecore Biomedical

Lifecore Biomedical Insider Transactions Over The Last Year

Notably, that recent purchase by Paul Josephs is the biggest insider purchase of Lifecore Biomedical shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$5.80. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Lifecore Biomedical insider decided to buy shares at close to current prices. Paul Josephs was the only individual insider to buy shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Insider Ownership

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. Lifecore Biomedical insiders own about US$15m worth of shares. That equates to 7.0% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Lifecore Biomedical Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Lifecore Biomedical we think they are probably pretty confident of a bright future. 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 Lifecore Biomedical is showing 4 warning signs in our investment analysis, and 1 of those is concerning...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.