Finbar Group COO & Executive Director Acquires 1.4% More Stock

Investors who take an interest in Finbar Group Limited (ASX:FRI) should definitely note that the COO & Executive Director, Ronald Chan, recently paid AU$0.70 per share to buy AU$240k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.4%.

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Finbar Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the MD & Executive Director, Darren Pateman, sold AU$1.8m worth of shares at a price of AU$0.74 per share. That means that an insider was selling shares at around the current price of AU$0.69. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Darren Pateman was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid AU$2.3m for 3.04m shares. On the other hand they divested 2.50m shares, for AU$1.8m. In the last twelve months there was more buying than selling by Finbar Group insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Finbar Group

Finbar Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Finbar Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Finbar Group insiders own about AU$24m worth of shares. That equates to 13% 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 Does This Data Suggest About Finbar Group Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Finbar Group shares, given these transactions (along with notable insider ownership of the company). 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. You'd be interested to know, that we found 2 warning signs for Finbar Group and we suggest you have a look.

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.