Don't Ignore The Fact That This Insider Just Sold Some Shares In Flux Power Holdings, Inc. (NASDAQ:FLUX)

We'd be surprised if Flux Power Holdings, Inc. (NASDAQ:FLUX) shareholders haven't noticed that the Independent Director, John Cosentino, recently sold US$220k worth of stock at US$15.90 per share. That sale was 18% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Flux Power Holdings

Flux Power Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Director Michael Johnson bought US$600k worth of shares at a price of US$4.00 per share. Even though the purchase was made at a significantly lower price than the recent price (US$14.92), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 253.13k shares worth US$1.0m. On the other hand they divested 13.83k shares, for US$220k. In the last twelve months there was more buying than selling by Flux Power Holdings insiders. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Flux Power Holdings

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Flux Power Holdings insiders own 1.1% of the company, worth about US$2.0m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.

What Might The Insider Transactions At Flux Power Holdings Tell Us?

An insider sold Flux Power Holdings shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. Still, insiders don't own a great deal of the stock. So overall it's hard to argue insiders are bullish. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Flux Power Holdings is showing 5 warning signs in our investment analysis, and 2 of those are a bit concerning...

Of course Flux Power Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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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This article by Simply Wall St is general in nature. 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.
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