Some Life Storage, Inc. (NYSE:LSI) shareholders may be a little concerned to see that the CEO & Director, Joseph Saffire, recently sold a substantial US$1.2m worth of stock at a price of US$131 per share. That sale reduced their total holding by 11% which is hardly insignificant, but far from the worst we've seen.
Life Storage Insider Transactions Over The Last Year
The Director, David Rogers, made the biggest insider sale in the last 12 months. That single transaction was for US$3.3m worth of shares at a price of US$131 each. So we know that an insider sold shares at around the present share price of US$130. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last year Life Storage insiders didn't buy any company stock. 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!
I will like Life Storage better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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. Life Storage insiders own about US$80m worth of shares. That equates to 0.7% 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.
What Might The Insider Transactions At Life Storage Tell Us?
Insiders sold Life Storage shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Life Storage is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Life Storage. For instance, we've identified 4 warning signs for Life Storage (1 is concerning) you should be aware of.
But note: Life Storage 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, but not derivative transactions.
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.