Little Green Pharma Ltd (ASX:LGP) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 14% resulting in a AU$6.8m addition to the company’s market value. In other words, the original AU$137k purchase is now worth AU$140k.
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.
View our latest analysis for Little Green Pharma
Little Green Pharma Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Alexander Waislitz for AU$100k worth of shares, at about AU$0.20 per share. That means that an insider was happy to buy shares at around the current price of AU$0.20. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Little Green Pharma share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Alexander Waislitz. Notably Alexander Waislitz was also the biggest seller.
Alexander Waislitz purchased 700.00k shares over the year. The average price per share was AU$0.20. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
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. We usually like to see fairly high levels of insider ownership. It appears that Little Green Pharma insiders own 16% of the company, worth about AU$8.7m. 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 Little Green Pharma Insider Transactions Indicate?
The fact that there have been no Little Green Pharma insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Little Green Pharma insiders are doubting the company, and they do own shares. 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. For instance, we've identified 3 warning signs for Little Green Pharma (1 is a bit concerning) you should be aware of.
But note: Little Green Pharma 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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March 17, 2023 at 03:47AM
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Had insiders known Little Green Pharma Ltd (ASX:LGP) would hit AU$54m they might have invested more last year - Yahoo Finance
https://news.google.com/search?q=little&hl=en-US&gl=US&ceid=US:en
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