Bullish Flight Centre Travel Group Insiders Loaded Up On AU$5.13m Of Stock

Multiple insiders secured a larger position in Flight Centre Travel Group Limited (ASX:FLT) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Flight Centre Travel Group Insider Transactions Over The Last Year

The Founder Graham Turner made the biggest insider purchase in the last 12 months. That single transaction was for AU$5.0m worth of shares at a price of AU$14.04 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$12.35). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Flight Centre Travel Group insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Flight Centre Travel Group

Flight Centre Travel Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Flight Centre Travel Group Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Flight Centre Travel Group. Independent Non-Executive Director Robert Baker shelled out AU$49k for shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership Of Flight Centre Travel Group

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Flight Centre Travel Group insiders own about AU$154m worth of shares (which is 5.9% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Flight Centre Travel Group Insiders?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Flight Centre Travel Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the 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. You'd be interested to know, that we found 1 warning sign for Flight Centre Travel Group and we suggest you have a look.

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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.