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Even if it's not a huge purchase, we think it was good to see that Nyap Gan, the Non-Executive Chairman of Fatfish Group Limited (ASX:FFG) recently shelled out AU$100k to buy stock, at AU$0.015 per share. However, it only increased their shares held by 4.3%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Fatfish Group
The Last 12 Months Of Insider Transactions At Fatfish Group
Over the last year, we can see that the biggest insider purchase was by insider Yong Loong Tan for AU$1.8m worth of shares, at about AU$0.015 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.021), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Fatfish Group insiders bought shares during the last year, they didn't sell. 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!
Fatfish Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Fatfish Group insiders own about AU$13m worth of shares (which is 43% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Fatfish Group Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Fatfish Group. Looks promising! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 5 warning signs for Fatfish Group (2 are potentially serious!) that we believe deserve your full attention.
Of course Fatfish Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.