Non-Independent Non-Executive Director of Lighthouse Properties Desmond de Beer Buys More Stock

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 R21m on stock at an average price of R8.03. While that only increased their holding size by 0.8%, it is still a big swing by our standards.

See our latest analysis for Lighthouse Properties

Lighthouse Properties Insider Transactions Over The Last Year

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. They previously made a sale of -R307m worth of shares at a price of R6.20 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of R8.10. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. This single sale was just 17% of Desmond de Beer's stake.

In the last twelve months insiders purchased 31.71m shares for R186m. On the other hand they divested 49.53m shares, for R307m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find winning investments 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Lighthouse Properties insiders own 23% 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 Does This Data Suggest About Lighthouse Properties Insiders?

The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. 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. Every company has risks, and we've spotted 3 warning signs for Lighthouse Properties (of which 1 doesn't sit too well with us!) you should know about.

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.