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Over the last year, a good number of insiders have significantly increased their holdings in Foresta Group Holding Limited (ASX:FGH). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Foresta Group Holding
The Last 12 Months Of Insider Transactions At Foresta Group Holding
In the last twelve months, the biggest single purchase by an insider was when insider Wayne Russell bought AU$1m worth of shares at a price of AU$0.013 per share. That means that an insider was happy to buy shares at around the current price of AU$0.013. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Foresta Group Holding insiders decided to buy shares at close to current prices.
Foresta Group Holding insiders may have bought shares in the last year, but they didn't sell any. 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Foresta Group Holding
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Foresta Group Holding insiders own about AU$16m worth of shares (which is 56% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Foresta Group Holding Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean 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 Foresta Group Holding insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the 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 6 warning signs for Foresta Group Holding you should be aware of, and 3 of them make us uncomfortable.