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Whilst it may not be a huge deal, we thought it was good to see that the RF Industries, Ltd. (NASDAQ:RFIL) Independent Chairman of the Board, Mark Holdsworth, recently bought US$71k worth of stock, for US$4.72 per share. However, it only increased their shares held by 9.9%, and it wasn't a huge purchase by absolute value, either.
RF Industries Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Chairman of the Board Mark Holdsworth was not their only acquisition of RF Industries shares this year. They previously made an even bigger purchase of US$71k worth of shares at a price of US$4.07 per share. Even though the purchase was made at a significantly lower price than the recent price (US$4.70), 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.
Mark Holdsworth purchased 54.94k shares over the year. The average price per share was US$4.20. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for RF Industries
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).
Does RF Industries Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that RF Industries insiders own about US$3.5m worth of shares (which is 6.9% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.
So What Do The RF Industries Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that RF Industries insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with RF Industries and understanding this should be part of your investment process.