We'd be surprised if Leaf Group Ltd. (NYSE:LEAF) shareholders haven't noticed that an insider, John Lewis, recently sold US$251k worth of stock at US$8.38 per share. The eyebrow raising move amounted to a reduction of 32% in their holding.
The Last 12 Months Of Insider Transactions At Leaf Group
In fact, the recent sale by John Lewis was the biggest sale of Leaf Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$8.42). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 32%of John Lewis's holding.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Leaf Group Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 3.0% of Leaf Group shares, worth about US$9.2m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Leaf Group Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we're not rushing to buy, to say the least. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Leaf Group. At Simply Wall St, we found 3 warning signs for Leaf Group that deserve your attention before buying any shares.
But note: Leaf Group 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.
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This article by Simply Wall St is general in nature. 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.
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