Investors who take an interest in Rural Funds Group (ASX:RFF) should definitely note that the MD & Director of Rural Funds Management Limited, David Bryant, recently paid AU$1.71 per share to buy AU$500k worth of the stock. That’s a very decent purchase to our minds and it grew their holding by a solid 11.4%.
Rural Funds Group Insider Transactions Over The Last Year
In fact, the recent purchase by David Bryant was the biggest purchase of Rural Funds Group shares made by an insider individual in the last twelve months, according to our records. So it’s clear an insider wanted to buy, at around the current price, which is AU$1.84. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Rural Funds Group insiders decided to buy shares at close to current prices.
In the last twelve months insiders paid AU$530k for 308k shares purchased. In the last twelve months Rural Funds Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Insider Ownership of Rural Funds Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own AU$5.3m worth of Rural Funds Group stock, about 0.9% of the company. I generally like to see higher levels of ownership.
So What Do The Rural Funds Group Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Rural Funds Group insiders are expecting a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Rural Funds 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, but not derivative transactions.
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