It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Flux Power Holdings, Inc. (NASDAQ:FLUX).

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for Flux Power Holdings

The Last 12 Months Of Insider Transactions At Flux Power Holdings

The Independent Director John Cosentino made the biggest insider purchase in the last 12 months. That single transaction was for US$250k worth of shares at a price of US$4.00 each. Even though the purchase was made at a significantly lower price than the recent price (US$11.57), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 103.13k shares worth US$413k. But insiders sold 13.83k shares worth US$220k. Overall, Flux Power Holdings insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Flux Power Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders at Flux Power Holdings Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Flux Power Holdings. In total, Independent Director John Cosentino sold US$220k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.