New Zealand markets open in 4 hours 11 minutes
  • NZX 50

    11,200.04
    +80.47 (+0.72%)
     
  • NZD/USD

    0.5707
    -0.0024 (-0.41%)
     
  • ALL ORDS

    6,760.60
    +100.80 (+1.51%)
     
  • OIL

    82.65
    +0.50 (+0.61%)
     
  • GOLD

    1,669.00
    -1.00 (-0.06%)
     

A RF Industries, Ltd. (NASDAQ:RFIL) insider increased their holdings by 35% last year

·3-min read

Viewing insider transactions for RF Industries, Ltd.'s (NASDAQ:RFIL ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for RF Industries

RF Industries Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Sheryl Cefali for US$58k worth of shares, at about US$7.50 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$6.20). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Sheryl Cefali was the only individual insider to buy during the last year.

Sheryl Cefali purchased 9.47k shares over the year. The average price per share was US$7.51. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

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).

Does RF Industries Boast High Insider Ownership?

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. From looking at our data, insiders own US$3.1m worth of RF Industries stock, about 5.0% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

What Might The Insider Transactions At RF Industries Tell Us?

It doesn't really mean much that no insider has traded RF Industries shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more RF Industries stock. 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 3 warning signs for RF Industries (1 is significant!) and we strongly recommend you look at these before investing.

Of course RF Industries 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.