News
Several insiders invested in Finexia Financial Group signaling positive news
When a single insider buys shares, it’s usually not a big deal. However, when multiple insiders buy shares, as in Finexia Financial Group Limited (ASX:FNX), for example, is good news for shareholders.
While we would never suggest that investors base their decisions solely on what a company’s managers have been doing, we think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Finexia Financial Group
The last 12 months of insider transactions at Finexia Financial Group
In the last twelve months, the biggest single purchase by an insider was when insider Glenn Molloy bought AU$360k worth of shares at a price of AU$0.24 per share. This means an insider was happy to buy shares above the current price of AU$0.21. Their views may have changed since then, but at least it shows that they felt optimistic at the time. For us, it is very important to consider the price that insiders pay for the shares. It is generally more encouraging if they pay above the current price, as it suggests they saw value, even at higher levels.
Over the past twelve months, members of Finexia Financial Group have purchased shares but not sold. The graph below shows internal transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much and when, just click on the graph below!
insider trading volume
There are always a lot of shares that insiders are buying. If investing in lesser-known companies is your style, you might want to check this out free list of companies. (Hint: insiders have been buying them).
Finexia Financial Group Insiders Bought Shares Recently
There was some insider buying at Finexia Financial Group last quarter. Non-Executive Director Robert Spano purchased AU$20,000 worth of shares at that time. We like it when there are only buyers and no sellers. But the amount invested in the last three months is not enough for us to put much weight on this as a single factor.
Does Finexia Financial Group have high insider ownership?
For an ordinary shareholder, it’s worth checking how many shares are owned by insiders. High insider ownership often makes company leadership more attentive to shareholder interests. It appears that members of Finexia Financial Group own 35% of the company, worth around AU$3.7 million. This level of insider ownership is good, but it almost stands out. It certainly suggests a reasonable degree of alignment.
So what does this data suggest about the members of Finexia Financial Group?
Domestic purchases may have been minimal over the past three months, but there have been no sales at all. The net investment is not enough to encourage us much. However, our analysis of last year’s transactions is encouraging. Insiders own shares in Finexia Financial Group and we see no evidence to suggest they are worried about the future. So while it’s useful to know what insiders are doing in terms of buying or selling, it’s also useful to know the risks a given company faces. At Simply Wall St, we discovered that Finexia Financial Group has 6 warning signs (2 cannot be ignored!) that deserve your attention before proceeding with your analysis.
The story continues
But note: Finexia Financial Group may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently only account for open market transactions and private dispositions of direct interests, but we do not account for derivative transactions or indirect interests.
Do you have feedback on this article? Worried about the content? Get in touch with us directly. Alternatively, email the editorial team (at) Simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your objectives or your financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St has no position in any of the stocks mentioned.