Law Debenture Independent Non-Executive Director Acquires 116% More Stock

Investors who take an interest in The Law Debenture Corporation p.l.c. (LON:LWDB) should definitely note that the Independent Non-Executive Director, Parwinder Purewal, recently paid UK£8.95 per share to buy UK£149k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 116%, potentially signalling some real optimism.

Check out our latest analysis for Law Debenture

Law Debenture Insider Transactions Over The Last Year

Notably, that recent purchase by Parwinder Purewal is the biggest insider purchase of Law Debenture shares that we've seen in the last year. That means that even when the share price was higher than UK£8.94 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Parwinder Purewal.

Parwinder Purewal bought a total of 17.25k shares over the year at an average price of UK£8.90. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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. 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Based on our data, Law Debenture insiders have about 0.07% of the stock, worth approximately UK£868k. We prefer to see high levels of insider ownership.

So What Do The Law Debenture Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Law Debenture insiders are expecting a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Law Debenture.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.