In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Frank's International N.V. (NYSE:FI), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
See our latest analysis for Frank's International
The Last 12 Months Of Insider Transactions At Frank's International
In the last twelve months, the biggest single sale by an insider was when the Supervisory Director, Donald Mosing, sold US$27m worth of shares at a price of US$7.95 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$5.47. So it is hard to draw any strong conclusion from it.
In the last twelve months insiders netted US$57m for 7.0m shares sold. Insiders in Frank's International didn't buy any shares in the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Frank's International Have Sold Stock Recently
The last quarter saw substantial insider selling of Frank's International shares. In total, Supervisory Director Steven Mosing dumped US$2.0m 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.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Frank's International insiders own 55% of the company, worth about US$683m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.