Even if it's not a huge purchase, we think it was good to see that William Hoy, the CFO & Executive Director of Luceco plc (LON:LUCE) recently shelled out UK￡61k to buy stock, at UK￡1.11 per share. That purchase might not be huge but it did increase their holding by 38%.

View our latest analysis for Luceco

Luceco Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Jonathan Hornby for UK￡4.9m worth of shares, at about UK￡1.49 per share. That means that even when the share price was higher than UK￡1.20 (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. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Jonathan Hornby was both the biggest buyer and the biggest seller.

Over the last year, we can see that insiders have bought 3.54m shares worth UK￡5.2m. But insiders sold 3.27m shares worth UK￡4.9m. In total, Luceco insiders bought more than they sold over the last year. 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.

Does Luceco Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Luceco insiders own 26% of the company, worth about UK￡48m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Luceco Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Luceco shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Luceco has 2 warning signs and it would be unwise to ignore them.