Findi Insider Buyers See Boost After Market Cap Rose AU$23m

Last week, Findi Limited (ASX:FND) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 13% last week, resulting in a AU$23m increase in the company's market worth, implying a 62% gain on their initial purchase. As a result, the stock they originally bought for AU$8.87m is now worth AU$14.4m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Findi

The Last 12 Months Of Insider Transactions At Findi

The insider Jack Yetiv made the biggest insider purchase in the last 12 months. That single transaction was for AU$8.4m worth of shares at a price of AU$4.73 each. That means that an insider was happy to buy shares at above the current price of AU$4.08. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid AU$8.9m for 3.52m shares. But insiders sold 1.54m shares worth AU$1.6m. Overall, Findi insiders were net buyers during the last year. The average buy price was around AU$2.52. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insiders At Findi Have Bought Stock Recently

Over the last quarter, Findi insiders have spent a meaningful amount on shares. insider Jack Yetiv spent AU$8.4m on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.

Does Findi Boast High Insider Ownership?

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. Insiders own 36% of Findi shares, worth about AU$72m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Findi Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Findi we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 3 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Findi.

But note: Findi 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.