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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Firan Technology Group Corporation's (TSE:FTG) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Firan Technology Group
The Last 12 Months Of Insider Transactions At Firan Technology Group
Over the last year, we can see that the biggest insider sale was by the CFO, VP & Corporate Secretary, James Crichton, for CA$84k worth of shares, at about CA$8.08 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CA$6.97). So it may not shed much light on insider confidence at current levels. James Crichton was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 39.30k shares for CA$225k. But they sold 10.40k shares for CA$84k. In total, Firan Technology Group insiders bought more than they sold over the last year. They paid about CA$5.73 on average. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Have Firan Technology Group Insiders Traded Recently?
In the last quarter there were insider sales totalling CA$84k. However that only slightly eclipses the CA$79k worth of purchases. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.
Does Firan Technology 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. We usually like to see fairly high levels of insider ownership. Firan Technology Group insiders own about CA$23m worth of shares. That equates to 13% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.