Insider Spends €27m Buying More Shares In Lighthouse Properties

Those following along with Lighthouse Properties p.l.c. (JSE:LTE) will no doubt be intrigued by the recent purchase of shares by Desmond de Beer, Non-Independent Non-Executive Director of the company, who spent a stonking R27m on stock at an average price of R7.58. While that only increased their holding size by 1.1%, it is still a big swing by our standards.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Lighthouse Properties Insider Transactions Over The Last Year

In fact, the recent purchase by Non-Independent Non-Executive Director Desmond de Beer was not their only acquisition of Lighthouse Properties shares this year. They previously made an even bigger purchase of R78m worth of shares at a price of R7.76 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being R7.74). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for 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.

In the last twelve months Lighthouse Properties insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Lighthouse Properties

Lighthouse Properties 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.

Does Lighthouse Properties Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Lighthouse Properties insiders own 18% of the company, currently worth about R2.8b based on the recent share price. 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 Lighthouse Properties Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Lighthouse Properties insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. Our analysis shows 3 warning signs for Lighthouse Properties (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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

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.