Have Insiders Been Buying Finsbury Food Group Plc (LON:FIF) Shares This Year?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Finsbury Food Group Plc (LON:FIF).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Finsbury Food Group

Finsbury Food Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Group Finance Director & Executive Director Stephen Boyd bought UK£56k worth of shares at a price of UK£0.57 per share. We do like to see buying, but this purchase was made at well below the current price of UK£0.73. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Finsbury Food Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Finsbury Food 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. Our data suggests Finsbury Food Group insiders own 3.2% of the company, worth about UK£2.9m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Finsbury Food Group Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Finsbury Food Group insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Finsbury Food Group. Every company has risks, and we've spotted 1 warning sign for Finsbury Food Group you should know about.

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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