Yahoo Finance Bullish First National Financial Insiders Loaded Up On CA$8.3m Of Stock \
Quite a few insiders have dramatically grown their holdings in First National Financial Corporation (TSE:FN) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for First National Financial
The Last 12 Months Of Insider Transactions At First National Financial
In the last twelve months, the biggest single purchase by an insider was when Co-Founder & Executive Chairman Stephen J. Smith bought CA$4.5m worth of shares at a price of CA$33.93 per share. We do like to see buying, but this purchase was made at well below the current price of CA$39.12. 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.
First National Financial insiders may have bought shares in the last year, but they didn't sell any. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At First National Financial Have Bought Stock Recently
It's good to see that First National Financial insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$1.5m worth of shares. This makes one think the business has some good points.
Insider Ownership Of First National Financial
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. First National Financial insiders own about CA$900m worth of shares (which is 38% of the company). 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 First National Financial Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about First National Financial. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with First National Financial and understanding this should be part of your investment process.
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.
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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.
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