David Flynn Bought 585% More Shares In Australian Finance Group
Investors who take an interest in Australian Finance Group Limited (ASX:AFG) should definitely note that the Independent Non-Executive Director, David Flynn, recently paid AU$1.59 per share to buy AU$159k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 585%, potentially signalling some real optimism.
Australian Finance Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Co-Founder & Non-Executive Director, Brett McKeon, sold AU$2.1m worth of shares at a price of AU$2.53 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (AU$1.57). So it may not tell us anything about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 170.00k shares worth AU$284k. On the other hand they divested 2.63m shares, for AU$6.7m. Over the last year we saw more insider selling of Australian Finance Group shares, than buying. 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!
Check out our latest analysis for Australian Finance Group
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Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Australian Finance Group insiders own about AU$86m worth of shares. That equates to 20% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Australian Finance Group Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by Australian Finance Group insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. 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 Australian Finance Group has 2 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.