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The Independent Chair of the Board of Farmers Edge Inc. (TSE:FDGE), R. McFarland, Just Bought 227% More Shares

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Potential Farmers Edge Inc. (TSE:FDGE) shareholders may wish to note that the Independent Chair of the Board, R. McFarland, recently bought CA$189k worth of stock, paying CA$4.73 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 227%.

View our latest analysis for Farmers Edge

The Last 12 Months Of Insider Transactions At Farmers Edge

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Lawrence Zucker, sold CA$318k worth of shares at a price of CA$18.19 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (CA$5.21). So it may not shed much light on insider confidence at current levels. Lawrence Zucker was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid CA$793k for 79.79k shares. On the other hand they divested 17.65k shares, for CA$318k. In total, Farmers Edge insiders bought more than they sold over the last year. They paid about CA$9.94 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Farmers Edge

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 Farmers Edge insiders own about CA$9.3m worth of shares (which is 4.3% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The Farmers Edge Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Farmers Edge insiders are reasonably well aligned, and optimistic for the future. 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 - Farmers Edge has 2 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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. 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.

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