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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Frugl Group Limited (ASX:FGL), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Frugl Group
Frugl Group Insider Transactions Over The Last Year
The Corporate Independent Non-Executive Director Mathew Walker made the biggest insider purchase in the last 12 months. That single transaction was for AU$90k worth of shares at a price of AU$0.052 each. That means that even when the share price was higher than AU$0.017 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Frugl Group insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. 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. 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).
Does Frugl Group Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Frugl Group insiders own 34% of the company, worth about AU$1.2m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Frugl Group Insiders?
It doesn't really mean much that no insider has traded Frugl Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Frugl Group insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Frugl Group. At Simply Wall St, we've found that Frugl Group has 5 warning signs (3 are a bit concerning!) that deserve your attention before going any further with your analysis.