Liberty Latin America Insiders Added US$6.69m Of Stock To Their Holdings

Simply Wall St · 10/17 14:34

Multiple insiders secured a larger position in Liberty Latin America Ltd. (NASDAQ:LILA) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Liberty Latin America

Liberty Latin America Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Brendan Paddick bought US$3.6m worth of shares at a price of US$9.10 per share. That implies that an insider found the current price of US$10.09 per share to be enticing. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Liberty Latin America share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 791.31k shares for US$6.7m. But they sold 15.17k shares for US$119k. Overall, Liberty Latin America 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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NasdaqGS:LILA Insider Trading Volume October 17th 2024

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).

Insiders At Liberty Latin America Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Liberty Latin America. Independent Director Brendan Paddick spent US$1.9m on stock. But Chief Accounting Officer Brian Zook sold shares worth US$57k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Does Liberty Latin America Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Liberty Latin America insiders own 11% of the company, worth about US$207m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Liberty Latin America Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Liberty Latin America. One for the watchlist, at least! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: Liberty Latin America may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.