Investors who take an interest in Largo Inc. (TSE:LGO) should definitely note that the President, Paulo Misk, recently paid CA$12.58 per share to buy CA$191k worth of the stock. That’s a very decent purchase to our minds and it grew their holding by a solid 14%.

Check out our latest analysis for Largo

Largo Insider Transactions Over The Last Year

The Independent Co-Chairman Ian Robertson made the biggest insider purchase in the last 12 months. That single transaction was for CA$509k worth of shares at a price of CA$14.14 each. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being CA$11.17). 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. To us, it’s very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Over the last year, we can see that insiders have bought 58.50k shares worth CA$793k. But insiders sold 24.60k shares worth CA$441k. In total, Largo insiders bought more than they sold over the last year. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Largo

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 Largo insiders own 0.6% of the company, worth about CA$4.0m. We consider this fairly low insider ownership.

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So What Does This Data Suggest About Largo Insiders?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it’d be more encouraging if Largo insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For example – Largo has 1 warning sign we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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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.