Even if it's not a huge purchase, we think it was good to see that Jodie Leonard, the Independent Non-Executive Director of FlexiGroup Limited (ASX:FXL) recently shelled out AU$59k to buy stock, at AU$1.49 per share. Even though that isn't a massive buy, it did increase their holding by 170%, which is a arguably a good sign.
The Last 12 Months Of Insider Transactions At FlexiGroup
In fact, the recent purchase by Jodie Leonard was the biggest purchase of FlexiGroup shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$1.47 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
FlexiGroup insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$1.66. This is nice to see since it implies that insiders might see value around current prices (around AU$1.47). The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of FlexiGroup
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. FlexiGroup insiders own about AU$153m worth of shares (which is 26% of the company). 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 Does This Data Suggest About FlexiGroup Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about FlexiGroup. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with FlexiGroup and understanding these should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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.
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