Stock Analysis

The Independent Director of Flexsteel Industries, Inc. (NASDAQ:FLXS), Matthew Kaness, Just Bought 27% More Shares

  •  Updated
NasdaqGS:FLXS
Source: Shutterstock

Potential Flexsteel Industries, Inc. (NASDAQ:FLXS) shareholders may wish to note that the Independent Director, Matthew Kaness, recently bought US$191k worth of stock, paying US$27.28 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 27%.

See 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. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$24.81. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Flexsteel Industries insiders bought shares during the last year, they didn't sell. 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!

insider-trading-volume
NasdaqGS:FLXS Insider Trading Volume November 22nd 2020

Flexsteel Industries is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Flexsteel Industries

Many investors like to check how much of a company is owned by 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. Flexsteel Industries insiders own about US$17m worth of shares. That equates to 9.5% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Flexsteel Industries Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Flexsteel Industries insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for Flexsteel Industries (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

If you decide to trade Flexsteel Industries, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted


Valuation is complex, but we're helping make it simple.

Find out whether Flexsteel Industries is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis