Bullish Liberty Latin America Insiders Loaded Up On US$1.26m Of Stock

In the last year, multiple insiders have substantially increased their holdings of Liberty Latin America Ltd. (NASDAQ:LILA) stock, indicating that insiders' optimism about the company's prospects has increased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Liberty Latin America

Liberty Latin America Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Paul Gould for US$1.2m worth of shares, at about US$6.77 per share. Even though the purchase was made at a significantly lower price than the recent price (US$8.28), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 191.31k shares for US$1.3m. But they sold 9.16k shares for US$62k. Overall, Liberty Latin America insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Liberty Latin America is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Liberty Latin America Have Bought Stock Recently

At Liberty Latin America,over the last quarter, we have observed quite a lot more insider buying than insider selling. We can see that Independent Director Paul Gould paid US$1.2m for shares in the company. But we did see Chief Accounting Officer Brian Zook sell shares worth US$62k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership Of Liberty Latin America

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Liberty Latin America insiders own 10% of the company, currently worth about US$171m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Liberty Latin America Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Liberty Latin America insiders are well aligned, and quite possibly think the share price is too low. Looks promising! Of course, the future is what matters most. So if you are interested in Liberty Latin America, you should check out this free report on analyst forecasts for the company.

But note: Liberty Latin America 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com