Yahoo Finance Laboratory Corporation of America Holdings (NYSE:LH) is up 6.4%, but insiders still continue to see a loss of US$4.3k on their US$933k investment
Insiders who purchased US$933k worth of Laboratory Corporation of America Holdings (NYSE:LH) shares over the past year recouped some of their losses after price gained 6.4% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$4.3k since the time of purchase.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Laboratory Corporation of America Holdings
The Last 12 Months Of Insider Transactions At Laboratory Corporation of America Holdings
In the last twelve months, the biggest single purchase by an insider was when Lead Independent Director Peter Neupert bought US$923k worth of shares at a price of US$265 per share. That means that even when the share price was higher than US$262 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 3.54k shares for US$933k. On the other hand they divested 749.00 shares, for US$216k. In the last twelve months there was more buying than selling by Laboratory Corporation of America Holdings insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Laboratory Corporation of America Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Laboratory Corporation of America Holdings Have Bought Stock Recently
There was some insider buying at Laboratory Corporation of America Holdings over the last quarter. Executive VP Brian Caveney shelled out US$10k for shares in that time. 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 Of Laboratory Corporation of America Holdings
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. Laboratory Corporation of America Holdings insiders own about US$55m worth of shares. That equates to 0.2% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Laboratory Corporation of America Holdings Tell Us?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Laboratory Corporation of America Holdings and their transactions don't cause us concern. 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. Case in point: We've spotted 2 warning signs for Laboratory Corporation of America Holdings you should be aware of, and 1 of them shouldn't be ignored.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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