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

Viewing insider transactions for Finbar Group Limited's (ASX:FRI ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

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. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.74. So it may not shed much light on insider confidence at current levels. Calogero Rubino was the only individual insider to sell shares in the last twelve months.

Calogero Rubino ditched 9.00m shares over the year. The average price per share was AU$0.80. 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!

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Does Finbar Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Finbar Group insiders own about AU$32m worth of shares. That equates to 16% of the company. 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 Finbar Group Insider Transactions Indicate?

The fact that there have been no Finbar Group insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Finbar Group insiders. The modest level of insider ownership is, at least, some comfort. 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. In terms of investment risks, we've identified 2 warning signs with Finbar Group and understanding these should be part of your investment process.

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.