Stock Analysis

This Insider Has Just Sold Shares In Firan Technology Group

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We wouldn't blame Firan Technology Group Corporation ( TSE:FTG ) shareholders if they were a little worried about the fact that Austin Beutel, a company insider, recently netted about CA$917k selling shares at an average price of CA$2.35. While this accounted for 100% of their holding, investors should ask themselves if there's more to the story than meets the eye.

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Firan Technology Group Insider Transactions Over The Last Year

In fact, the recent sale by Austin Beutel was the biggest sale of Firan Technology Group shares made by an insider individual in the last twelve months, according to our records. This transaction was at an average sale price of CA$2.35. As a general rule we consider it to be discouraging when insiders are selling below the current price of CA$2.50, because it suggests they were happy with a lower valuation. However, a look into this specific transaction shows that Austin Beutel sold his shares in Firan Technology Group. to Oakwest Corporation Limited, an investment holding company of which he is the chairman of. So while this 100% sale of his direct holdings in FTG looked like a worrying signal at face value, we see that in reality, the shares were just transferred to his investment company.

Over the last year, we can see that insiders have bought 355.00k shares worth CA$735k, not including the amount that was bought by Beutel's Oakwest Corporation. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

TSX:FTG Insider Trading Volume February 2nd 2023

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Firan Technology 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. We usually like to see fairly high levels of insider ownership. Our data indicates that Firan Technology Group insiders own about CA$8.8m worth of shares (which is 15% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Firan Technology Group Insiders?

While some of the buying we see is a fairly decent signal, insiders own relatively few shares in the company, and so we're not particularly excited about the stock. So we're not rushing to buy, to say the least. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Firan Technology Group. To assist with this, we've discovered  1 warning sign that you should run your eye over to get a better picture of Firan Technology Group.

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, but not derivative transactions.

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