32% Of This Finbar Group Insider's Holdings Were Sold

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

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Finbar Group

The Last 12 Months Of Insider Transactions At Finbar Group

Over the last year, we can see that the biggest insider sale was by the insider, Calogero Rubino, for AU$4.1m worth of shares, at about AU$0.83 per share. That means that an insider was selling shares at around the current price of AU$0.80. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Calogero Rubino was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid AU$74k for 111.07k shares. On the other hand they divested 9.00m shares, for AU$7.2m. Calogero Rubino divested 9.00m shares over the last 12 months at an average price of AU$0.80. The chart below shows insider transactions (by companies and individuals) over the last year. 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: Most of them are flying under the radar).

Insiders At Finbar Group Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Finbar Group. In total, insider Calogero Rubino sold AU$7.2m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Finbar Group 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 16% of Finbar Group shares, worth about AU$35m. 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 Does This Data Suggest About Finbar Group Insiders?

An insider sold Finbar Group shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Finbar Group makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. For instance, we've identified 4 warning signs for Finbar Group (3 are a bit concerning) you should be aware of.

But note: Finbar 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.

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