Stock Analysis

Have Insiders Been Buying Flexsteel Industries, Inc. (NASDAQ:FLXS) Shares This Year?

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NasdaqGS:FLXS
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Flexsteel Industries, Inc. (NASDAQ:FLXS).

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for Flexsteel Industries

Flexsteel Industries Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CFO, COO Derek Schmidt bought US$987k worth of shares at a price of US$16.80 per share. Even though the purchase was made at a significantly lower price than the recent price (US$35.06), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Flexsteel Industries insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:FLXS Insider Trading Volume February 23rd 2021

Flexsteel Industries is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Are Flexsteel Industries Insiders Buying Or Selling?

Independent Director Matthew Kaness bought just US$2.2k worth of shares in that time. That's not much at all. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Does Flexsteel Industries Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Flexsteel Industries insiders own 11% of the company, worth about US$26m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Flexsteel Industries Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Flexsteel Industries insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Flexsteel Industries. Every company has risks, and we've spotted 2 warning signs for Flexsteel Industries (of which 1 doesn't sit too well with us!) you should know about.

But note: Flexsteel Industries 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, but not derivative transactions.

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