Whilst it may not be a huge deal, we thought it was good to see that the Fiducian Group Ltd (ASX:FID) Independent Non-Executive Director, Samir Hallab, recently bought AU$122k worth of stock, for AU$7.38 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 21%.
The Last 12 Months Of Insider Transactions At Fiducian Group
In fact, the recent purchase by Samir Hallab was the biggest purchase of Fiducian Group 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$6.90 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Samir Hallab was the only individual insider to buy during the last year.
Samir Hallab bought 20.50k shares over the last 12 months at an average price of AU$7.40. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 Fiducian Group
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Fiducian Group insiders own 42% of the company, currently worth about AU$90m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Fiducian Group Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. 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. One for the watchlist, at least! 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. In terms of investment risks, we've identified 1 warning sign with Fiducian Group and understanding this should be part of your investment process.
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.
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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.
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