Yahoo Finance Liberty Latin America Ltd. (NASDAQ:LILA) insiders placed bullish bets worth US$660k in the last 12 months
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Liberty Latin America Ltd. (NASDAQ:LILA), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Liberty Latin America
Liberty Latin America Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Senior VP, John Winter, sold US$394k worth of shares at a price of US$9.84 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$7.40. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was John Winter.
In the last twelve months insiders purchased 63.80k shares for US$660k. But they sold 40.00k shares for US$394k. Overall, Liberty Latin America insiders were net buyers during the last year. They paid about US$10.34 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Liberty Latin America Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Liberty Latin America. Specifically, Senior VP Aamir Hussain bought US$176k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Does Liberty Latin America 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Liberty Latin America insiders own 9.1% of the company, currently worth about US$148m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Liberty Latin America Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Liberty Latin America insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Liberty Latin America.
But note: Liberty Latin America may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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