In the last year, multiple insiders have substantially increased their holdings of Luceco plc (LON:LUCE) stock, indicating that insiders' optimism about the company's prospects has increased.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Luceco

The Last 12 Months Of Insider Transactions At Luceco

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. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK￡1.09). 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. 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. Notably Jonathan Hornby was also the biggest seller.

Happily, we note that in the last year insiders paid UK￡5.1m for 3.49m shares. But they sold 3.27m shares for UK￡4.9m. Overall, Luceco insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Luceco

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. Luceco insiders own about UK￡44m worth of shares. That equates to 26% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Luceco Tell Us?

It doesn't really mean much that no insider has traded Luceco shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Luceco insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Luceco. You'd be interested to know, that we found 2 warning signs for Luceco and we suggest you have a look.