In the last year, multiple insiders have substantially increased their holdings of Finbar Group Limited (ASX:FRI) stock, indicating that insiders' optimism about the company's prospects has increased.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Finbar Group

The Last 12 Months Of Insider Transactions At Finbar Group

The insider Calogero Rubino made the biggest insider purchase in the last 12 months. That single transaction was for AU$6.7m worth of shares at a price of AU$0.57 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.65. 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.

In the last twelve months Finbar Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction! insider-trading-volume

Finbar Group is not the only stock insiders are buying. So take a peek at this freelist of growing companies with insider buying.

Insiders At Finbar Group Have Bought Stock Recently

Over the last quarter, Finbar Group insiders have spent a meaningful amount on shares. insider Calogero Rubino spent AU$6.7m on stock, and there wasn't any selling. That shows some optimism about the company's future.

Does Finbar Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Finbar Group insiders own 18% of the company, worth about AU$33m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.



What Might The Insider Transactions At Finbar Group Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Finbar Group insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Finbar Group. Be aware that Finbar Group is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

Of course Finbar Group may not be the best stock to buy. So you may wish to see this freecollection 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.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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