Multiple insiders bought The Law Debenture Corporation p.l.c. (LON:LWDB) stock earlier this year, a positive sign for shareholders

·3 min read

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in The Law Debenture Corporation p.l.c.'s (LON:LWDB) instance, it's good news for shareholders.

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.

See our latest analysis for Law Debenture

The Last 12 Months Of Insider Transactions At Law Debenture

The insider Mark Bridgeman made the biggest insider purchase in the last 12 months. That single transaction was for UK£112k worth of shares at a price of UK£7.47 each. That implies that an insider found the current price of UK£7.84 per share to be enticing. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Law Debenture insiders decided to buy shares at close to current prices.

While Law Debenture insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Are Law Debenture Insiders Buying Or Selling?

Over the last three months, we've seen a bit of insider buying at Law Debenture. COO & Executive Director Trish Houston purchased UK£4.9k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data isn't picking up on much insider ownership at Law Debenture, though insiders do hold about UK£168k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Does This Data Suggest About Law Debenture Insiders?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Law Debenture insiders are doubting the company. While we like knowing 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. Our analysis shows 4 warning signs for Law Debenture (3 are a bit unpleasant!) and we strongly recommend you look at these before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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