In This Article:
Those following along with First National Financial Corporation (TSE:FN) will no doubt be intrigued by the recent purchase of shares by Stephen J. Smith, Co-Founder & Executive Chairman of the company, who spent a stonking CA$1.4m on stock at an average price of CA$38.89. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.2%.
Check out our latest analysis for First National Financial
First National Financial Insider Transactions Over The Last Year
In fact, the recent purchase by Co-Founder & Executive Chairman Stephen J. Smith was not their only acquisition of First National Financial shares this year. Earlier in the year, they paid CA$33.93 per share in a CA$4.5m purchase. We do like to see buying, but this purchase was made at well below the current price of CA$38.50. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While First National Financial insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does First National Financial Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. First National Financial insiders own about CA$886m worth of shares (which is 38% 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 First National Financial Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about First National Financial. That's what I like to see! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for First National Financial that deserve your attention before buying any shares.