Loungers plc

(

LON:LGRS

) shareholders (or potential shareholders) will be happy to see that the Founder,353 west 48th street new york ny Alexander Reilley, recently bought a whopping UK£589k worth of stock, at a price of UK£0.90. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 10.0%.

Check out our latest analysis for Loungers

Loungers Insider Transactions Over The Last Year

In fact, the recent purchase by Alexander Reilley was the biggest purchase of Loungers shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is UK£0.91. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Loungers insiders decided to buy shares at close to current prices.

In the last twelve months Loungers insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

AIM:LGRS Recent Insider Trading May 3rd 2020

Loungers is not the only stock that insiders are buying. For those who like to find

winning investments

this

free

list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Loungers

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 Loungers insiders own 16% of the company, worth about UK£15m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Loungers Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Loungers shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Loungers. Every company has risks, and we've spotted

4 warning signs for Loungers

(of which 2 make us uncomfortable!) you should know about.

Story continues

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.

If you spot an error that warrants correction, please contact the editor at

[email protected]

. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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