LSL Property Services plc’s (LON:LSL) stock rose 12% last week, but insiders who sold UK£458k worth of stock over the last year are probably in a more advantageous position. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of UK£4.58, which is higher than the current price, may have been the best decision.
Although we don’t think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for LSL Property Services
The Last 12 Months Of Insider Transactions At LSL Property Services
The insider, Jon Round, made the biggest insider sale in the last 12 months. That single transaction was for UK£458k worth of shares at a price of UK£4.58 each. So we know that an insider sold shares at around the present share price of UK£4.35. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive). Jon Round was the only individual insider to sell shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. LSL Property Services insiders own about UK£46m worth of shares. That equates to 10% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At LSL Property Services Tell Us?
It doesn’t really mean much that no insider has traded LSL Property Services shares in the last quarter. Our analysis of LSL Property Services insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing LSL Property Services. When we did our research, we found 2 warning signs for LSL Property Services (1 shouldn’t be ignored!) that we believe deserve your full attention.
But note: LSL Property Services 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, but not derivative transactions.
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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.
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