Yahoo Finance Insiders at FRNT Financial Inc. (CVE:FRNT) recouped some losses this week after buying this year, still down CA$33k
Insiders who bought CA$85k worth of FRNT Financial Inc. (CVE:FRNT) stock in the last year have seen some of their losses recouped as the stock gained 16% last week. However, total losses seen by insiders are still CA$33k but in since the time of purchase.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for FRNT Financial
The Last 12 Months Of Insider Transactions At FRNT Financial
Over the last year, we can see that the biggest insider purchase was by insider Robert Browne for CA$74k worth of shares, at about CA$1.50 per share. That means that an insider was happy to buy shares at above the current price of CA$0.81. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months FRNT Financial insiders were buying shares, but not selling. Their average price was about CA$1.32. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
FRNT Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Are FRNT Financial Insiders Buying Or Selling?
There was some insider buying at FRNT Financial over the last quarter. President David Washburn bought CA$11k worth of shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Insider Ownership of FRNT 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. I reckon it's a good sign if insiders own a significant number of shares in the company. FRNT Financial insiders own about CA$24m worth of shares (which is 84% 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 FRNT Financial Tell Us?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, FRNT Financial insiders feel good about the company's 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. At Simply Wall St, we've found that FRNT Financial has 3 warning signs (2 are potentially serious!) that deserve your attention before going any further with your analysis.
Of course FRNT Financial 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.
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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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