Insiders Buying FFI Holdings Might Wish They Invested More, Stock Gains 13%
FFI Holdings Limited (ASX:FFI) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 13%, resulting in a AU$7.9m rise in the company's market capitalisation, translating to a gain of 16% on their initial investment. As a result, their original purchase of AU$422.9k worth of stock is now worth AU$490.5k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At FFI Holdings
The insider Kenneth Beer made the biggest insider purchase in the last 12 months. That single transaction was for AU$423k worth of shares at a price of AU$4.27 each. We do like to see buying, but this purchase was made at well below the current price of AU$4.95. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
The chart below shows insider transactions (by companies and 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!
See our latest analysis for FFI Holdings
FFI Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does FFI Holdings Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that FFI Holdings insiders own 58% of the company, worth about AU$39m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About FFI Holdings 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. Judging from their transactions, and high insider ownership, FFI Holdings insiders feel good about the company's future. 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. Our analysis shows 4 warning signs for FFI Holdings (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.
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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.