This Insider Has Just Sold Shares In LSI Industries

We'd be surprised if LSI Industries Inc. (NASDAQ:LYTS) shareholders haven't noticed that the Independent Chairman, Wilfred O'Gara, recently sold US$250k worth of stock at US$24.09 per share. On the bright side, that sale was only 9.1% of their holding, so we doubt it's very meaningful, on its own.

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The Last 12 Months Of Insider Transactions At LSI Industries

The CEO, President & Director, James Clark, made the biggest insider sale in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$23.01 each. That means that even when the share price was below the current price of US$24.09, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 11% of James Clark's stake.

LSI Industries insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for LSI Industries

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does LSI Industries Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that LSI Industries insiders own 4.6% of the company, worth about US$39m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The LSI Industries Insider Transactions Indicate?

An insider sold LSI Industries shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since LSI Industries is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 3 warning signs we've spotted with LSI Industries (including 1 which is significant).

But note: LSI Industries 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.

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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.