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The CFO, COO of Flexsteel Industries, Inc. (NASDAQ:FLXS), Derek Schmidt, Just Bought 5.4% More Shares

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Simply Wall St
·3 min read
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Investors who take an interest in Flexsteel Industries, Inc. (NASDAQ:FLXS) should definitely note that the CFO, COO, Derek Schmidt, recently paid US$32.67 per share to buy US$258k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.4%.

See our latest analysis for Flexsteel Industries

The Last 12 Months Of Insider Transactions At Flexsteel Industries

Notably, that recent purchase by CFO, COO Derek Schmidt was not the only time they bought Flexsteel Industries shares this year. Earlier in the year, they paid US$16.80 per share in a US$987k purchase. We do like to see buying, but this purchase was made at well below the current price of US$36.58. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Flexsteel Industries insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!


Flexsteel Industries is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Flexsteel Industries insiders own about US$28m worth of shares. That equates to 11% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Flexsteel Industries Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives 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 Flexsteel Industries insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Flexsteel Industries has 1 warning sign we think you should be aware of.

But note: Flexsteel Industries 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.