Quite a few insiders have dramatically grown their holdings in Findi Limited (ASX:FND) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

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.

See our latest analysis for Findi

Findi Insider Transactions Over The Last Year

The insider Jack Yetiv made the biggest insider purchase in the last 12 months. That single transaction was for AU$8.4m worth of shares at a price of AU$4.73 each. That means that even when the share price was higher than AU$3.42 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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.

Happily, we note that in the last year insiders paid AU$8.9m for 3.52m shares. On the other hand they divested 1.54m shares, for AU$1.6m. Overall, Findi insiders were net buyers during the last year. They paid about AU$2.52 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Findi Insiders Bought Stock Recently

Over the last quarter, Findi insiders have spent a meaningful amount on shares. We can see that insider Jack Yetiv paid AU$8.4m for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Findi insiders own about AU$60m worth of shares. That equates to 36% 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.