CFO & Member of the Management Board of Basic-Fit Picks Up 7.8% More Stock

Potential Basic-Fit N.V. (AMS:BFIT) shareholders may wish to note that the CFO & Member of the Management Board, Hans van der Aar, recently bought €211k worth of stock, paying €21.10 for each share. Although the purchase only increased their holding by 7.8%, it is still a solid purchase in our view.

See our latest analysis for Basic-Fit

Basic-Fit Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Founder, René Moos, sold €45m worth of shares at a price of €26.54 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is €22.82. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was René Moos.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Basic-Fit insiders own 12% of the company, currently worth about €181m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Basic-Fit Tell Us?

The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Basic-Fit (of which 1 is concerning!) you should know about.

But note: Basic-Fit 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 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.