Investors who take an interest in FINEOS Corporation Holdings plc (ASX:FCL) should definitely note that the Founder, Michael Kelly, recently paid AU$2.25 per share to buy AU$545k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 19%.

View our latest analysis for FINEOS Corporation Holdings

FINEOS Corporation Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Founder Michael Kelly was not their only acquisition of FINEOS Corporation Holdings shares this year. They previously made an even bigger purchase of AU$1.0m worth of shares at a price of AU$1.32 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$1.91), we still think insider buying is a positive. 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 FINEOS Corporation Holdings insiders were buying shares, but not selling. The average buy price was around AU$1.50. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below! ASX:FCL Insider Trading Volume December 27th 2023

FINEOS Corporation Holdings is not the only stock that insiders are buying. For those who like to find winning investments this freelist of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of FINEOS Corporation Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests FINEOS Corporation Holdings insiders own 0.6% of the company, worth about AU$4.1m. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.



What Might The Insider Transactions At FINEOS Corporation Holdings Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that FINEOS Corporation Holdings insiders are reasonably well aligned, and optimistic for the 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. For example - FINEOS Corporation Holdings has 1 warning sign we think you should be aware of.

Of course FINEOS Corporation Holdings 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 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.