Largo Inc. (TSE:LGO) shareholders (or potential shareholders) will be happy to see that the Co-CEO & Executive Chairman, Jesús Arias López, recently bought a whopping CA$1.8m worth of stock, at a price of CA$0.80. While that only increased their holding size by -103%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Largo
Notably, that recent purchase by Jesús Arias López is the biggest insider purchase of Largo shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of CA$0.64. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid CA$2.0m for 2.42m shares. On the other hand they divested 267.28k shares, for CA$354k. In the last twelve months there was more buying than selling by Largo insiders. 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!
View our latest analysis for Largo
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Largo
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Largo insiders own 1.1% of the company, worth about CA$855k. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Largo Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Largo stock. 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 4 warning signs for Largo you should be aware of, and 1 of them can't be ignored.
Of course Largo may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.