When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Lakeland Industries, Inc.'s (NASDAQ:LAKE) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Lakeland Industries
Over the last year, we can see that the biggest insider purchase was by Director Christopher Ryan for US$59k worth of shares, at about US$11.75 per share. We do like to see buying, but this purchase was made at well below the current price of US$14.38. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months Lakeland Industries insiders were buying shares, but not selling. 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!
Lakeland Industries is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Lakeland Industries 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Lakeland Industries insiders own 4.5% of the company, worth about US$4.7m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Lakeland Industries Tell Us?
The fact that there have been no Lakeland Industries insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Lakeland Industries insiders are doubting the company. 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. You'd be interested to know, that we found 1 warning sign for Lakeland Industries and we suggest you have a look.
Of course Lakeland Industries may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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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