Don't Ignore The Insider Selling In Axos Financial

We wouldn't blame Axos Financial, Inc. (NYSE:AX) shareholders if they were a little worried about the fact that Paul Grinberg, the Independent Chairman of the Board recently netted about US$2.0m selling shares at an average price of US$68.09. That's a big disposal, and it decreased their holding size by 21%, which is notable but not too bad.

We've discovered 1 warning sign about Axos Financial. View them for free.

The Last 12 Months Of Insider Transactions At Axos Financial

In the last twelve months, the biggest single sale by an insider was when the President, Gregory Garrabrants, sold US$10m worth of shares at a price of US$82.01 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$68.79. So it is hard to draw any strong conclusion from it.

Over the last year we saw more insider selling of Axos Financial shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Axos Financial

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).

Does Axos Financial Boast High 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. Axos Financial insiders own about US$372m worth of shares (which is 9.6% of the company). 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?

Unfortunately, there has been more insider selling of Axos Financial stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Axos Financial makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Axos Financial. In terms of investment risks, we've identified 1 warning sign with Axos Financial and understanding this should be part of your investment process.

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.