Insider Spends €45m Buying More Shares In Lighthouse Properties
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 R45m on stock at an average price of R8.15. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 1.4%.
Lighthouse Properties Insider Transactions Over The Last Year
The Alternate Director, Nicolaas Hanekom, made the biggest insider sale in the last 12 months. That single transaction was for R756m worth of shares at a price of R147 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is R8.25. So it may not shed much light on insider confidence at current levels. Nicolaas Hanekom was the only individual insider to sell shares in the last twelve months.
Over the last year, we can see that insiders have bought 25.60m shares worth R315m. But insiders sold 5.15m shares worth R756m. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Lighthouse Properties
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does Lighthouse Properties Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Lighthouse Properties insiders own about R3.4b worth of shares (which is 20% of the company). 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. But we can't say the same for the transactions over the last 12 months. The recent buying by an insider , along with high insider ownership, suggest that Lighthouse Properties insiders are fairly aligned, and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lighthouse Properties. For example, Lighthouse Properties has 3 warning signs (and 1 which shouldn't be ignored) we think 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.