We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in LiveHire Limited (ASX:LVH).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Check out our latest analysis for LiveHire
The Last 12 Months Of Insider Transactions At LiveHire
There wasn’t any very large single transaction over the last year, but we can still observe some trading.
In the last twelve months insiders paid AU$135k for 284.17k shares purchased. In the last twelve months there was more buying than selling by LiveHire insiders. They paid about AU$0.47 on average. Although they bought at below the recent price of AU$0.55 per share, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
LiveHire is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at LiveHire Have Bought Stock Recently
Over the last quarter, LiveHire insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought AU$100k worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership of LiveHire
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. LiveHire insiders own about AU$52m worth of shares (which is 35% 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.