Have LifeVantage Insiders Been Selling Stock?
We note that the LifeVantage Corporation (NASDAQ:LFVN) Chief Sales Officer, Kristen Cunningham, recently sold US$56k worth of stock for US$6.18 per share. However we note that the sale only shrunk their holding by 7.0%.
The Last 12 Months Of Insider Transactions At LifeVantage
The Independent Director, Michael Beindorff, made the biggest insider sale in the last 12 months. That single transaction was for US$250k worth of shares at a price of US$7.33 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$6.18. So it may not tell us anything about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid US$185k for 38.91k shares. On the other hand they divested 67.61k shares, for US$472k. Over the last year we saw more insider selling of LifeVantage shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 LifeVantage
I will like LifeVantage 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 LifeVantage
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. LifeVantage insiders own about US$15m worth of shares. That equates to 19% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The LifeVantage Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. Case in point: We've spotted 4 warning signs for LifeVantage you should be aware of, and 1 of them shouldn't be ignored.
But note: LifeVantage 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.