In the last year, multiple insiders have substantially increased their holdings of The Lottery Corporation Limited (ASX:TLC) stock, indicating that insiders' optimism about the company's prospects has increased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Lottery

The Last 12 Months Of Insider Transactions At Lottery

The MD, CEO & Director Sue van der Merwe made the biggest insider purchase in the last 12 months. That single transaction was for AU$810k worth of shares at a price of AU$5.09 each. That means that an insider was happy to buy shares at around the current price of AU$5.15. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 Lottery share holders is that insiders were buying at near the current price.

In the last twelve months Lottery insiders were buying shares, but not selling. 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!ASX:TLC Insider Trading Volume December 4th 2024

Lottery is not the only stock insiders are buying. So take a peek at this freelist of under-the-radar companies with insider buying.

Insiders At Lottery Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Lottery. MD, CEO & Director Sue van der Merwe spent AU$810k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.

Insider Ownership Of Lottery

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 appears that Lottery insiders own 0.3% of the company, worth about AU$35m. 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 Lottery Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Lottery shares, given these transactions (along with notable insider ownership of 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. At Simply Wall St, we found 2 warning signs for Lottery that deserve your attention before buying any shares.

Story Continues

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this freelist of interesting companies, that have HIGH return on equity 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.

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