Yahoo Finance Insiders Re-Evaluate Their US$1.0m Stock Purchase As Flora Growth Falls To US$22m
The recent price decline of 13% in Flora Growth Corp.'s (NASDAQ:FLGC) stock may have disappointed insiders who bought US$1.0m worth of shares at an average price of US$1.90 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$815.8k which is not ideal.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Flora Growth
Flora Growth Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Clifford Starke bought US$1m worth of shares at a price of US$1.90 per share. That means that even when the share price was higher than US$1.55 (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. 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. Clifford Starke was the only individual insider to buy during the last year.
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!
Flora Growth 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 Flora Growth
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 14% of Flora Growth shares, worth about US$3.1m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Flora Growth Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. 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 Flora Growth insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Flora Growth. Be aware that Flora Growth is showing 4 warning signs in our investment analysis, and 2 of those are significant...
Of course Flora Growth 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 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.
