Insider Buying: The First National Financial Corporation (TSE:FN) Co-Founder Just Bought CA$4.7m Worth Of Shares

First National Financial Corporation (TSE:FN) shareholders (or potential shareholders) will be happy to see that the Co-Founder, Stephen J. Smith, recently bought a whopping CA$4.7m worth of stock, at a price of CA$44.87. While that only increased their holding size by 0.5%, it is still a big swing by our standards.

View our latest analysis for First National Financial

First National Financial Insider Transactions Over The Last Year

Notably, that recent purchase by Stephen J. Smith is the biggest insider purchase of First National Financial shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of CA$44.33. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Stephen J. Smith was the only individual insider to buy during the last year.

Stephen J. Smith purchased 187.14k shares over the year. The average price per share was CA$44.94. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume

First National Financial 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.

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. We usually like to see fairly high levels of insider ownership. First National Financial insiders own about CA$1.0b 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.

So What Does This Data Suggest About First National Financial Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about First National Financial. Nice! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for First National Financial.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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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