Founder & Director Howard Hill Just Sold A Bunch Of Shares In RF Industries, Ltd. (NASDAQ:RFIL)

Some RF Industries, Ltd. (NASDAQ:RFIL) shareholders may be a little concerned to see that the Founder & Director, Howard Hill, recently sold a substantial US$1.3m worth of stock at a price of US$5.59 per share. That diminished their holding by a very significant 98%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for RF Industries

RF Industries Insider Transactions Over The Last Year

In fact, the recent sale by Howard Hill was the biggest sale of RF Industries shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$4.98. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 14.60k shares worth US$57k. But insiders sold 241.69k shares worth US$1.4m. All up, insiders sold more shares in RF Industries than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does RF Industries Boast High Insider Ownership?

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. From our data, it seems that RF Industries insiders own 6.2% of the company, worth about US$2.9m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

So What Do The RF Industries Insider Transactions Indicate?

An insider sold RF Industries shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 1 warning sign with RF Industries and understanding it should be part of your investment process.

But note: RF 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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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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