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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Fidelity National Financial, Inc. (NYSE:FNF).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
View our latest analysis for Fidelity National Financial
The Last 12 Months Of Insider Transactions At Fidelity National Financial
In the last twelve months, the biggest single sale by an insider was when Executive Vice President of Corporate Strategy Brent Bickett sold US$2.5m worth of shares at a price of US$39.10 per share. That means that an insider was selling shares at around the current price of US$31.11. They might be selling for a variety of reasons, but it’s hard to argue this is a bullish sign. We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price.
All up, insiders sold more shares in Fidelity National Financial than they bought, over the last year. They sold for an average price of about US$38.95. We don’t gain much confidence from insider selling near the recent share price. But we don’t put too much weight on the insider selling, since sellers could have personal reasons. The chart below shows insider transactions over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Fidelity National Financial Insiders Bought Stock Recently
It’s good to see that Fidelity National Financial insiders have made notable investments in the company’s shares. John Rood spent US$1.0m on stock, and there wasn’t any selling. This makes one think the business has some good points.