Despite LL Flooring Holdings, Inc. (NYSE:LL) shares rising 13% last week, insiders who sold US$221,000 worth of shares in the past 12 months should be better off . Holding shares would have meant that their investment would be worth less today than it was when sold. So, selling at an average price of US$21.04, which is higher than the current price, might have been the best move.
While we don’t think shareholders should simply follow insider trading, we think it makes perfect sense to keep tabs on what insiders are doing.
See our latest analysis for LL Flooring Holdings
LL Flooring Holdings Insider Trading in the Last Year
The independent director, Douglas Moore, has made the biggest insider sale in the past 12 months. This single transaction was for US$221,000 of shares at a price of US$21.04 each. While we generally don’t like to see insider selling, it’s more of a concern if the selling takes place at a lower price. The silver lining is that this sale took place above the last price (US$12.35). So this may not shed much light on insider confidence at current levels. The only individual insider salesperson in the past year was Douglas Moore.
Over the past twelve months, insiders have purchased 7,530 shares for $150,000. But insiders sold 10.51k shares worth US$221k. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the chart below!
I’d like LL Flooring Holdings better if I see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.
Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. We generally like to see fairly high levels of insider ownership. Insiders of LL Flooring Holdings own approximately $12 million in stock. This equates to 3.3% of the business. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.
So what do LL Flooring Holdings insider trading indicate?
It doesn’t mean much that no insider traded shares of LL Flooring Holdings in the last quarter. Our analysis of LL Flooring Holdings insider trading leaves us cautious. But we like the fact that insiders own a good chunk of the business. In addition to knowing the insider trading going on, it pays to identify the risks that LL Flooring Holdings faces. Example: we have identified 4 warning signs for LL Flooring Holdings you should be aware, and one of them doesn’t sit well with us.
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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