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Trade Alert: The Independent Non-Executive Director Of Fiducian Group Limited (ASX:FID), Samir Hallab, Has Just Spent AU$120k Buying 23% More Shares

Simply Wall St

Even if it's not a huge purchase, we think it was good to see that Samir Hallab, the Independent Non-Executive Director of Fiducian Group Limited (ASX:FID) recently shelled out AU$120k to buy stock, at AU$6.01 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 23%.

View our latest analysis for Fiducian Group

Fiducian Group Insider Transactions Over The Last Year

The Independent Director, Robert Bucknell, made the biggest insider sale in the last 12 months. That single transaction was for AU$285k worth of shares at a price of AU$5.67 each. That means that even when the share price was below the current price of AU$5.83, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 9.1% of Robert Bucknell's holding.

Over the last year, we can see that insiders have bought 216.22k shares worth AU$986k. But they sold 105.54k shares for AU$544k. In total, Fiducian Group insiders bought more than they sold over the last year. They paid about AU$4.56 on average. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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

Fiducian Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Fiducian Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Fiducian Group insiders own 43% of the company, worth about AU$78m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Fiducian Group Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Fiducian Group insiders are well aligned, and quite possibly think the share price is too low. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for Fiducian Group you should be aware of.

Of course Fiducian Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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. 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.