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Even if it's not a huge purchase, we think it was good to see that Malcolm Ward, the Non-Executive Director of Farm Pride Foods Limited (ASX:FRM) recently shelled out AU$100k to buy stock, at AU$0.10 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 18%.
See our latest analysis for Farm Pride Foods
Farm Pride Foods Insider Transactions Over The Last Year
In fact, the recent purchase by Malcolm Ward was the biggest purchase of Farm Pride Foods shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of AU$0.12. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 1.07m shares worth AU$108k. But insiders sold 1.00m shares worth AU$100k. In total, Farm Pride Foods insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Farm Pride Foods is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Farm Pride Foods Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Farm Pride Foods insiders own 52% of the company, worth about AU$10m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Farm Pride Foods Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Farm Pride Foods insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for Farm Pride Foods (1 can't be ignored!) and we strongly recommend you look at these before investing.