Have Lite Strategy Insiders Been Selling Stock?

Some Lite Strategy, Inc. (NASDAQ:LITS) shareholders may be a little concerned to see that insider Alexander Schornstein recently sold a substantial US$946k worth of stock at a price of US$1.37 per share. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.

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Lite Strategy Insider Transactions Over The Last Year

Notably, that recent sale by Alexander Schornstein is the biggest insider sale of Lite Strategy shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$1.37. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

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!

See our latest analysis for Lite Strategy

I will like Lite Strategy 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.

Insider Ownership Of Lite Strategy

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. Our data indicates that Lite Strategy insiders own about US$6.4m worth of shares (which is 13% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Lite Strategy Insiders?

Unfortunately, there has been more insider selling of Lite Strategy stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Lite Strategy has 5 warning signs (and 3 which can't be ignored) we think you should know about.

But note: Lite Strategy 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.