Liberty Latin America Insiders Added US$8.05m Of Stock To Their Holdings

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.

Check out 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 Brendan Paddick for US$3.6m worth of shares, at about US$9.10 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$6.34). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 990.86k shares worth US$8.0m. But insiders sold 15.17k shares worth US$119k. In the last twelve months there was more buying than selling by Liberty Latin America insiders. They paid about US$8.12 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Insiders At Liberty Latin America Have Bought Stock Recently

Over the last quarter, Liberty Latin America insiders have spent a meaningful amount on shares. We can see that Independent Director Brendan Paddick paid US$1.4m for shares in the company. No-one sold. That shows some optimism about the company's future.

Does Liberty Latin America Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Liberty Latin America insiders own about US$134m worth of shares (which is 11% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Liberty Latin America. That's what I like to see! 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.

Of course Liberty Latin America may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.