We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in INTL FCStone Inc. (NASDAQ:INTL).
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
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INTL FCStone Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the , Paul Anderson, for US$482k worth of shares, at about US$51.92 per share. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. The good news is that this large sale was at well above current price of US$37.07. So it may not tell us anything about how insiders feel about the current share price.
All up, insiders sold more shares in INTL FCStone than they bought, over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
INTL FCStone Insiders Bought Stock Recently
We saw some INTL FCStone insider buying shares in the last three months. Non-Executive Director John Fowler shelled out US$19k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
Does INTL FCStone Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. INTL FCStone insiders own 15% of the company, currently worth about US$105m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About INTL FCStone Insiders?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. While we gain confidence from high insider ownership of INTL FCStone, we can't say the same about their transactions in the last year, in the absence of further purchases. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free .
But note: INTL FCStone 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.
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