Whilst it may not be a huge deal, we thought it was good to see that the LiveXLive Media, Inc. (NASDAQ:LIVX) Founder, Robert Ellin, recently bought US$85k worth of stock, for US$1.93 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for LiveXLive Media

The Last 12 Months Of Insider Transactions At LiveXLive Media

Notably, that recent purchase by Founder Robert Ellin was not the only time they bought LiveXLive Media shares this year. Earlier in the year, they paid US$2.80 per share in a US$89k purchase. That means that an insider was happy to buy shares at above the current price of US$2.21. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Robert Ellin was also the biggest seller.

Over the last year, we can see that insiders have bought 176.73k shares worth US$440k. But insiders sold 178.00 shares worth US$259. In the last twelve months there was more buying than selling by LiveXLive Media insiders. Their average price was about US$2.49. This is nice to see since it implies that insiders might see value around current prices. 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!

LiveXLive Media is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does LiveXLive Media Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. 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 appears that LiveXLive Media insiders own 21% of the company, worth about US$33m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At LiveXLive Media Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest LiveXLive Media insiders are well aligned, and that they may think the share price is too low. 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. In terms of investment risks, we've identified 3 warning signs with LiveXLive Media and understanding them should be part of your investment process.

But note: LiveXLive Media 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, but not derivative transactions.

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. 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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