Even if it's not a huge purchase, we think it was good to see that David Bower, the Independent Non-Executive Director of FSA Group Limited (ASX:FSA) recently shelled out AU$72k to buy stock, at AU$1.03 per share. Even though that isn't a massive buy, it did increase their holding by 77%, which is a arguably a good sign.
FSA Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive Director Deborah Southon bought AU$107k worth of shares at a price of AU$1.06 per share. That means that an insider was happy to buy shares at above the current price of AU$1.06. 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. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
FSA Group insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by 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!
FSA Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of FSA Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that FSA Group insiders own 34% of the company, worth about AU$45m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The FSA Group Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in FSA Group shares, given these transactions (along with notable insider ownership of the company). Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for FSA Group.
But note: FSA Group 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.