Potential Limelight Networks, Inc. (NASDAQ:LLNW) shareholders may wish to note that the Independent Non-Executive Chairman, David Peterschmidt, recently bought US$244k worth of stock, paying US$3.59 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 223%, potentially signalling some real optimism.

Check out our latest analysis for Limelight Networks

Limelight Networks Insider Transactions Over The Last Year

Notably, that recent purchase by David Peterschmidt is the biggest insider purchase of Limelight Networks shares that we've seen in the last year. That implies that an insider found the current price of US$3.71 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Limelight Networks insider decided to buy shares at close to current prices. David Peterschmidt was the only individual insider to buy during the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Limelight Networks Boast High Insider Ownership?

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Limelight Networks insiders own about US$8.4m worth of shares (which is 1.7% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Limelight Networks Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Limelight Networks insiders are expecting a bright future. While we like knowing 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Limelight Networks.