When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Open Lending Corporation’s (NASDAQ:LPRO) instance, it’s good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Notably, that recent purchase by Matthew Sather is the biggest insider purchase of Open Lending shares that we’ve seen in the last year. That means that an insider was happy to buy shares at around the current price of US$1.65. 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. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. Happily, the Open Lending insiders decided to buy shares at close to current prices.
Open Lending insiders may have bought shares in the last year, but they didn’t sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Open Lending
Open Lending is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
It’s good to see that Open Lending insiders have made notable investments in the company’s shares. Specifically, insider Matthew Sather bought US$61k worth of shares in that time, and we didn’t record any sales whatsoever. This is a positive in our book as it implies some confidence.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Open Lending insiders own 1.3% of the company, worth about US$2.6m. We prefer to see high levels of insider ownership.
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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Open Lending insiders are expecting a bright future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Open Lending.