Non-Independent Non-Executive Director of Lighthouse Properties Picks Up 3.1% More Stock

Lighthouse Properties p.l.c. (JSE:LTE) shareholders (or potential shareholders) will be happy to see that the Non-Independent Non-Executive Director, Desmond de Beer, recently bought a whopping R78m worth of stock, at a price of R7.76. While that only increased their holding size by 3.1%, it is still a big swing by our standards.

View our latest analysis for Lighthouse Properties

The Last 12 Months Of Insider Transactions At Lighthouse Properties

Notably, that recent purchase by Non-Independent Non-Executive Director Desmond de Beer was not the only time they traded Lighthouse Properties shares this year. Earlier in the year, they sold shares at a price ofR6.20 per share in a -R307m transaction. That means that even when the share price was below the current price of R8.08, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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 17% of Desmond de Beer's holding.

In the last twelve months insiders purchased 33.25m shares for R230m. On the other hand they divested 49.53m shares, for R307m. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Lighthouse Properties better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Lighthouse Properties Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Lighthouse Properties insiders own 24% of the company, currently worth about R3.5b 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.

So What Do The Lighthouse Properties Insider Transactions Indicate?

The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Lighthouse Properties insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Lighthouse Properties is showing 4 warning signs in our investment analysis, and 2 of those can't be ignored...

But note: Lighthouse Properties 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.