Insiders who bought Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$87m as a result of the stock's 16% gain over the same period. In other words, the original US$1.68m purchase is now worth US$2.53m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Lindblad Expeditions Holdings Insider Transactions Over The Last Year

The Independent Director Alexander Schultz made the biggest insider purchase in the last 12 months. That single transaction was for US$342k worth of shares at a price of US$9.36 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$11.71. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 215.83k shares worth US$1.7m. But they sold 38.14k shares for US$329k. In total, Lindblad Expeditions Holdings insiders bought more than they sold over the last year. The average buy price was around US$7.80. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Lindblad Expeditions Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Lindblad Expeditions Holdings Insiders Bought Stock Recently

There has been significantly more insider buying, than selling, at Lindblad Expeditions Holdings, over the last three months. In total, two insiders bought US$275k worth of shares in that time. On the other hand, Chief Commercial Officer Noah Brodsky netted US$151k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Lindblad Expeditions Holdings insiders own 32% of the company, worth about US$160m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Lindblad Expeditions Holdings Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Lindblad Expeditions Holdings. Looks promising! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Lindblad Expeditions Holdings is showing 2 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...

But note: Lindblad Expeditions Holdings 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.