Chief Financial Officer Of Freedom Holding Sold 37% Of Their Shares

We wouldn't blame Freedom Holding Corp. (NASDAQ:FRHC) shareholders if they were a little worried about the fact that Evgeny Ler, the Chief Financial Officer recently netted about US$3.1m selling shares at an average price of US$157. That sale reduced their total holding by 37% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Freedom Holding

The Last 12 Months Of Insider Transactions At Freedom Holding

In fact, the recent sale by Evgeny Ler was the biggest sale of Freedom Holding shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$146. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Insiders in Freedom Holding didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Insider Ownership Of Freedom Holding

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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's great to see that Freedom Holding insiders own 71% of the company, worth about US$6.3b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Freedom Holding Tell Us?

Insiders sold Freedom Holding shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Freedom Holding. You'd be interested to know, that we found 2 warning signs for Freedom Holding and we suggest you have a look.

But note: Freedom Holding 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.