When one insider buys shares, it usually doesn't amount to a big deal. But when multiple insiders buy shares, e.g. Finexia Financial Group Limited (ASX:FNX) , this is good news for shareholders.
While we're by no means saying that investors should base their judgement solely on the actions of a company's directors, we think it's entirely logical to keep an eye on insider behavior.
Check out our latest analysis for Finexia Financial Group
Insider transactions at Finexia Financial Group over the last 12 months
In the last 12 months, the largest single purchase by an insider was when insider Glenn Molloy bought A$360k worth of shares at A$0.24 per share. This means that insiders were happy to buy shares at above the current price of A$0.21. Their views may have changed since then, but we can see that they were at least optimistic at the time. For us, it is very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it shows they saw value at higher levels as well.
In the last twelve months Finexia Financial Group insiders have been buying shares but not selling them. The chart below shows insider transactions (by companies and individuals) over the last year: If you want to see exactly who sold, for how much, and when, you can click on the chart below.
There are always plenty of stocks that insiders are buying, so if investing in lesser known companies is your style, then this is worth a look. free A list of companies. (Hint: insiders are buying).
Finexia Financial Group insiders have recently bought shares
Finexia Financial Group has seen insider buying in the last quarter. Non-executive Director Robert Spano purchased A$20,000 worth of shares during that time. Having only buyers and no sellers is a good situation. However, the amount of money invested in the past three months is not enough to be weighted as a single factor.
Does Finexia Financial Group boast high insider ownership?
For ordinary shareholders, it is worth checking how many shares are held by company insiders. With high insider ownership, company management tends to be more mindful of shareholder interests. Finexia Financial Group insiders appear to own 35% of the company's shares, valued at roughly AU$3.7m. This level of insider ownership is good, but not particularly noteworthy. It certainly suggests some degree of alignment.
So what does this data tell us about Finexia Financial Group insiders?
While insider purchases over the past three months may have been minimal, there were no sales whatsoever. The net investment amount is not enough to encourage us too much. However, an analysis of transactions over the past year is encouraging. While insiders own shares in Finexia Financial Group, we don't see any evidence to suggest that they are worried about the future. So while it's useful to know what insiders are doing in terms of buying or selling, it's also useful to know the risks facing a particular company. At Simply Wall St, we want to know if Finexia Financial Group is 6 Warning Signs (2 cannot be ignored!) It is worth noting before proceeding further with the analysis.
However, please note: Finexia Financial Group may not be the best stock to buySo, take a look at this free This list of interesting companies has high ROE and low debt.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. Currently, we count only open market transactions and private dispositions of direct interests, not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives, or your financial situation. We seek to provide long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
