Investors who take an interest in Axos Financial, Inc. (NYSE:AX) should definitely note that the Independent Chairman of the Board, Paul Grinberg, recently paid US$20.00 per share to buy US$256k worth of the stock. That’s a very decent purchase to our minds and it grew their holding by a solid 12%.
The Last 12 Months Of Insider Transactions At Axos Financial
In fact, the recent purchase by Paul Grinberg was the biggest purchase of Axos Financial shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$18.51. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. To us, it’s very important to consider the price insiders pay for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Axos Financial insiders may have bought shares in the last year, but they didn’t sell any. 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 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.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Axos Financial insiders own about US$146m worth of shares (which is 13% of the company). 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 Do The Axos Financial Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Axos Financial. Nice! 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. To assist with this, we’ve discovered 1 warning sign that you should run your eye over to get a better picture of Axos Financial.
But note: Axos Financial may not be the best stock to buy. So take a peek 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 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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