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Insiders who bought AU$2.10m worth of Fatfish Group Limited (ASX:FFG) stock in the last year recovered part of their losses as the stock rose by 10.0% last week. However, total losses seen by insiders are still AU$428k since the time of purchase.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Fatfish Group
The Last 12 Months Of Insider Transactions At Fatfish Group
In the last twelve months, the biggest single purchase by an insider was when insider Yong Loong Tan bought AU$1.8m worth of shares at a price of AU$0.015 per share. That means that even when the share price was higher than AU$0.011 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Fatfish Group insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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).
Does Fatfish Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Fatfish Group insiders own 44% of the company, currently worth about AU$6.7m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Fatfish Group Tell Us?
It doesn't really mean much that no insider has traded Fatfish Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Fatfish Group 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. To that end, you should learn about the 6 warning signs we've spotted with Fatfish Group (including 4 which are a bit concerning).