It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Firan Technology Group Corporation (TSE:FTG).
Do Insider Transactions Matter?
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, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. 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.
The Last 12 Months Of Insider Transactions At Firan Technology Group
In the last twelve months, the biggest single purchase by an insider was when President Bradley Bourne bought CA$151k worth of shares at a price of CA$3.78 per share. That means that even when the share price was higher than CA$1.78 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. To us, it’s very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Bradley Bourne was also the biggest seller.
Happily, we note that in the last year insiders paid CA$421k for 165.78k shares. On the other hand they divested 71060 shares, for CA$268k. Overall, Firan Technology Group insiders were net buyers during the last year. Their average price was about CA$2.54. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Firan Technology Group 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.
Insiders at Firan Technology Group Have Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Firan Technology Group. Overall, four insiders shelled out CA$240k for shares in the company — and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership of Firan Technology Group
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Firan Technology Group insiders own 5.0% of the company, worth about CA$1.9m. However, it’s possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.
What Might The Insider Transactions At Firan Technology Group Tell Us?
It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Firan Technology Group insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Firan Technology Group. To that end, you should learn about the 5 warning signs we’ve spotted with Firan Technology Group (including 1 which makes us a bit uncomfortable).
Of course Firan Technology Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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.