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Investors who take an interest in Insignia Financial Ltd. (ASX:IFL) should definitely note that the Independent Non-Executive Chairman, Allan Griffiths, recently paid AU$2.32 per share to buy AU$232k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 100%, potentially signalling some real optimism.
View our latest analysis for Insignia Financial
The Last 12 Months Of Insider Transactions At Insignia Financial
In fact, the recent purchase by Allan Griffiths was the biggest purchase of Insignia Financial shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$2.32 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Insignia Financial share holders is that insiders were buying at near the current price.
In the last twelve months Insignia Financial insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Insiders own 7.0% of Insignia Financial shares, worth about AU$109m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Insignia Financial Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Insignia Financial insiders are well aligned, and quite possibly think the share price is too low. Looks promising! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Insignia Financial.