The fact that multiple Open Lending Corporation (NASDAQ:LPRO) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors.   When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message.  However, if numerous insiders are selling, shareholders should investigate more.    

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.

Open Lending Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Non-Employee Member of the Board, John Flynn, sold US$515k worth of shares at a price of US$10.30 per share.   While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price.  The silver lining is that this sell-down took place above the latest price (US$5.57).  So it may not shed much light on insider confidence at current levels.  

Open Lending insiders didn't buy any shares over the last year.    You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below.  If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NasdaqGM:LPRO Insider Trading Volume May 9th 2024

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Open Lending Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own.  A high insider ownership often makes company leadership more mindful of shareholder interests.   Insiders own 5.6% of Open Lending shares, worth about US$35m.  This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.  

So What Do The Open Lending Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Open Lending shares in the last quarter.      Our analysis of Open Lending insider transactions leaves us cautious.   The modest level of insider ownership is, at least, some comfort.      In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Open Lending.    For example - Open Lending has 1 warning sign we think you should be aware of.  

Of course Open Lending may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.