Axos Financial Insiders Sell US$2.8m Of Stock, Possibly Signalling Caution \

Over the past year, many Axos Financial, Inc. (NYSE:AX) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Axos Financial

Axos Financial Insider Transactions Over The Last Year

The Executive Vice President of Finance, Andrew Micheletti, made the biggest insider sale in the last 12 months. That single transaction was for US$940k worth of shares at a price of US$47.52 each. While insider selling is a negative, to us, it is more negative if the shares are sold 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 US$39.64. So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 4.18k shares worth US$147k. But insiders sold 60.45k shares worth US$2.8m. In total, Axos Financial insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insiders At Axos Financial Have Sold Stock Recently

We've seen more insider selling than insider buying at Axos Financial recently. In that time, Executive Vice President of Finance Andrew Micheletti dumped US$203k worth of shares. On the other hand we note insiders bought US$147k worth of shares , as previously mentioned . The share price has moved a bit recently, but it's hard to argue that the selling is a positive.

Does Axos Financial 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Axos Financial insiders own 11% of the company, worth about US$269m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Axos Financial Tell Us?

The insider sales have outweighed the insider buying, at Axos Financial, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Axos Financial is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Axos Financial.

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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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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.