Positive Signs As Multiple Insiders Buy Fairfax India Holdings Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Fairfax India Holdings Corporation's (TSE:FIH.U) instance, it's good news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Fairfax India Holdings

The Last 12 Months Of Insider Transactions At Fairfax India Holdings

The insider Brian Bradstreet made the biggest insider purchase in the last 12 months. That single transaction was for US$235k worth of shares at a price of US$12.03 each. We do like to see buying, but this purchase was made at well below the current price of US$15.15. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 31.47k shares for US$390k. But insiders sold 20.50k shares worth US$227k. In the last twelve months there was more buying than selling by Fairfax India Holdings insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Fairfax India Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Have Fairfax India Holdings Insiders Traded Recently?

Non-Independent Director Benjamin Watsa bought just US$3.1k worth of shares in that time. That's not much at all. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Does Fairfax India Holdings 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. We usually like to see fairly high levels of insider ownership. Our data indicates that Fairfax India Holdings insiders own about US$7.8m worth of shares (which is 0.4% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Fairfax India Holdings Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Fairfax India Holdings stock. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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