U.S. markets open in 9 hours 2 minutes
  • S&P Futures

    3,232.50
    +1.25 (+0.04%)
     
  • Dow Futures

    26,696.00
    +11.00 (+0.04%)
     
  • Nasdaq Futures

    10,828.00
    -1.00 (-0.01%)
     
  • Russell 2000 Futures

    1,451.60
    +4.90 (+0.34%)
     
  • Crude Oil

    39.44
    -0.49 (-1.23%)
     
  • Gold

    1,861.70
    -6.70 (-0.36%)
     
  • Silver

    22.33
    -0.77 (-3.33%)
     
  • EUR/USD

    1.1660
    -0.0001 (-0.01%)
     
  • 10-Yr Bond

    0.6760
    -0.6640 (-100.00%)
     
  • Vix

    28.58
    +1.72 (+6.40%)
     
  • GBP/USD

    1.2714
    -0.0011 (-0.09%)
     
  • USD/JPY

    105.4340
    +0.1020 (+0.10%)
     
  • BTC-USD

    10,317.29
    +67.82 (+0.66%)
     
  • CMC Crypto 200

    217.43
    +3.46 (+1.62%)
     
  • FTSE 100

    5,899.26
    +69.80 (+1.20%)
     
  • Nikkei 225

    23,156.54
    -189.95 (-0.81%)
     

Read This Before Selling The Food Revolution Group Limited (ASX:FOD) Shares

Simply Wall St

It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in The Food Revolution Group Limited (ASX:FOD).

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

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. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for Food Revolution Group

Food Revolution Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Domenic Martino for AU$418k worth of shares, at about AU$0.066 per share. That means that an insider was happy to buy shares at above the current price of AU$0.04. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Food Revolution Group insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.057. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Food Revolution Group

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Food Revolution Group insiders own 36% of the company, worth about AU$11m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Food Revolution Group Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Food Revolution Group and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Food Revolution Group is showing 4 warning signs in our investment analysis, and 2 of those make us uncomfortable...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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@simplywallst.com.