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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Foxtons Group plc (LON:FOXT), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Foxtons Group
The Last 12 Months Of Insider Transactions At Foxtons Group
Over the last year, we can see that the biggest insider purchase was by Independent Chairman Nigel Sutherland Rich for UK£107k worth of shares, at about UK£0.43 per share. That means that even when the share price was higher than UK£0.39 (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. 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.
While Foxtons Group insiders bought shares during the last year, they didn't sell. They paid about UK£0.37 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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!
Foxtons Group 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 Foxtons Group
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. Based on our data, Foxtons Group insiders have about 0.9% of the stock, worth approximately UK£1.1m. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Foxtons Group Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Foxtons Group stock. 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. You'd be interested to know, that we found 1 warning sign for Foxtons Group and we suggest you have a look.