Yahoo Finance Trade Alert: The Chairman & CEO Of PhenixFIN Corporation (NASDAQ:PFX), David Lorber, Has Just Spent US$348k Buying 13% More Shares
Potential PhenixFIN Corporation (NASDAQ:PFX) shareholders may wish to note that the Chairman & CEO, David Lorber, recently bought US$348k worth of stock, paying US$37.15 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 13%.
See our latest analysis for PhenixFIN
PhenixFIN Insider Transactions Over The Last Year
Notably, that recent purchase by Chairman & CEO David Lorber was not the only time they bought PhenixFIN shares this year. They previously made an even bigger purchase of US$1.3m worth of shares at a price of US$43.00 per share. That means that an insider was happy to buy shares at above the current price of US$37.01. 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.
In the last twelve months PhenixFIN insiders were buying shares, but not selling. 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!
PhenixFIN is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of PhenixFIN
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. PhenixFIN insiders own about US$13m worth of shares. That equates to 15% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About PhenixFIN Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of PhenixFIN we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 1 warning sign for PhenixFIN you should know about.
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.
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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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