Australian Finance Group Sees Insider Stock Selling

From what we can see, insiders were net sellers in Australian Finance Group Limited's (ASX:AFG ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Australian Finance Group

The Last 12 Months Of Insider Transactions At Australian Finance Group

Over the last year, we can see that the biggest insider sale was by the Co-Founder & Non-Executive Director, Malcolm Watkins, for AU$608k worth of shares, at about AU$1.52 per share. That means that an insider was selling shares at slightly below the current price (AU$1.64). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 2.4% of Malcolm Watkins's stake. Malcolm Watkins was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 90.00k shares worth AU$135k. But insiders sold 400.00k shares worth AU$608k. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders At Australian Finance Group Have Bought Stock Recently

Over the last quarter, Australian Finance Group insiders have spent a meaningful amount on shares. In total, insiders bought AU$135k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Does Australian Finance Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Australian Finance Group insiders own 23% of the company, worth about AU$102m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Australian Finance Group Insider Transactions Indicate?

It is good to see recent purchasing. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Australian Finance Group you should be aware of, and 1 of them is potentially serious.

But note: Australian Finance Group 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 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.