Insiders were net buyers of Bell Financial Group Limited's (ASX:BFG ) stock during the past year. That is, insiders bought more stock than they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Bell Financial Group
Bell Financial Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive Chairman & MD Alastair Provan for AU$564k worth of shares, at about AU$0.94 per share. That means that even when the share price was higher than AU$0.94 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Alastair Provan.
Alastair Provan purchased 700.00k shares over the year. The average price per share was AU$0.95. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Bell Financial Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Bell Financial Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 11% of Bell Financial Group shares, worth about AU$32m. 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 Do The Bell Financial Group Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Bell Financial Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Bell Financial Group and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Bell Financial Group has 1 warning sign and it would be unwise to ignore this.