Yahoo Finance Lemonade CFO & Principal Accounting Officer Acquires 8.7% More Stock
Potential Lemonade, Inc. (NYSE:LMND) shareholders may wish to note that the CFO & Principal Accounting Officer, Timothy Bixby, recently bought US$305k worth of stock, paying US$15.23 for each share. Although the purchase only increased their holding by 8.7%, it is still a solid purchase in our view.
View our latest analysis for Lemonade
The Last 12 Months Of Insider Transactions At Lemonade
In fact, the recent purchase by Timothy Bixby was the biggest purchase of Lemonade shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$16.20 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. The good news for Lemonade share holders is that an insider was buying at near the current price. Timothy Bixby was the only individual insider to buy during the last year. We note that Timothy Bixby was also the biggest seller.
Timothy Bixby bought 30.00k shares over the last 12 months at an average price of US$15.67. 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!
Lemonade is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Lemonade insiders own about US$60m worth of shares. That equates to 5.7% 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.
So What Does This Data Suggest About Lemonade Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Lemonade insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Lemonade you should be aware of.
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 of direct interests only, but not derivative transactions or indirect interests.
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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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