Axos Financial Insiders Sold US$18m Of Shares Suggesting Hesitancy

In the last year, many Axos Financial, Inc. (NYSE:AX) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Axos Financial

Axos Financial Insider Transactions Over The Last Year

The President, Gregory Garrabrants, made the biggest insider sale in the last 12 months. That single transaction was for US$10m worth of shares at a price of US$82.01 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$66.21). So it may not tell us anything about how insiders feel about the current share price.

Over the last year we saw more insider selling of Axos Financial shares, than buying. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insiders At Axos Financial Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Axos Financial. In total, Executive Vice President of Commercial Banking & Treasury Management - Axos Bank David Park dumped US$122k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. We usually like to see fairly high levels of insider ownership. Axos Financial insiders own 9.4% of the company, currently worth about US$357m 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.

So What Do The Axos Financial Insider Transactions Indicate?

An insider hasn't bought Axos Financial stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But since Axos Financial is profitable and growing, we're not too worried by this. 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.

But note: Axos Financial 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.