Those following along with First National Financial Corporation (TSE:FN) will no doubt be intrigued by the recent purchase of shares by Stephen J. Smith, Co-Founder of the company, who spent a stonking CA$4.7m on stock at an average price of CA$44.87. While that only increased their holding size by 0.5%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At First National Financial
Notably, that recent purchase by Stephen J. Smith is the biggest insider purchase of First National Financial shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$44.33). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Stephen J. Smith.
Stephen J. Smith bought 187.14k shares over the last 12 months at an average price of CA$44.94. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does First National Financial Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that First National Financial insiders own 38% of the company, worth about CA$1.0b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The First National Financial Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about First National Financial. One for the watchlist, at least! Of course, the future is what matters most. So if you are interested in First National Financial, you should check out this free report on analyst forecasts for the company.
Of course First National Financial may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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.
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