Insider Buying: The Francesca's Holdings Corporation (NASDAQ:FRAN) Independent Director Just Bought US$51k Worth Of Shares
Whilst it may not be a huge deal, we thought it was good to see that the Francesca's Holdings Corporation (NASDAQ:FRAN) Independent Director, Patricia Bender, recently bought US$51k worth of stock, for US$10.15 per share. That purchase might not be huge but it did increase their holding by 25%.
Check out our latest analysis for Francesca's Holdings
The Last 12 Months Of Insider Transactions At Francesca's Holdings
Over the last year, we can see that the biggest insider purchase was by Chairman of the Board Richard Emmett for US$57k worth of shares, at about US$11.43 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$10.09). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Francesca's Holdings insiders were buying shares, but not selling. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Francesca's Holdings 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 Francesca's Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Francesca's Holdings insiders have about 3.8% of the stock, worth approximately US$1.2m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Francesca's Holdings Tell Us?
It is good to see recent purchasing. 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 Francesca's Holdings insiders are reasonably well aligned, and optimistic for the future. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
But note: Francesca's Holdings 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
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