RF Industries Independent Chairman of the Board Acquires 9.9% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the RF Industries, Ltd. (NASDAQ:RFIL) Independent Chairman of the Board, Mark Holdsworth, recently bought US$71k worth of stock, for US$4.72 per share. However, it only increased their shares held by 9.9%, and it wasn't a huge purchase by absolute value, either.

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RF Industries Insider Transactions Over The Last Year

Notably, that recent purchase by Independent Chairman of the Board Mark Holdsworth was not the only time they bought RF Industries shares this year. They previously made an even bigger purchase of US$71k worth of shares at a price of US$4.07 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.70. 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.

Mark Holdsworth bought 54.94k shares over the last 12 months at an average price of US$4.20. 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!

View our latest analysis for RF Industries

RF Industries is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of RF Industries

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that RF Industries insiders own about US$3.5m worth of shares (which is 6.9% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About RF Industries Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that RF Industries insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of RF Industries.

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 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.