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PhenixFIN Corporation (NASDAQ:PFX) shareholders (or potential shareholders) will be happy to see that the Chairman & CEO, David Lorber, recently bought a whopping US$618k worth of stock, at a price of US$48.05. While that only increased their holding size by 10.0%, it is still a big swing by our standards.
View our latest analysis for PhenixFIN
PhenixFIN Insider Transactions Over The Last Year
In fact, the recent purchase by Chairman & CEO David Lorber was not their only acquisition of PhenixFIN shares this year. They previously made an even bigger purchase of US$879k worth of shares at a price of US$45.08 per share. That implies that an insider found the current price of US$49.70 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the PhenixFIN insiders decided to buy shares at close to current prices.
In the last twelve months PhenixFIN insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of PhenixFIN
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that PhenixFIN insiders own 20% of the company, worth about US$20m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About PhenixFIN Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of PhenixFIN we think they are probably pretty confident of a bright future. 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. Case in point: We've spotted 4 warning signs for PhenixFIN you should be aware of, and 2 of these are a bit concerning.