Yahoo Finance Have Insiders Been Buying Rural Funds Group (ASX:RFF) Shares This Year?
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Rural Funds Group (ASX:RFF).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Rural Funds Group
The Last 12 Months Of Insider Transactions At Rural Funds Group
MD & Director of Rural Funds Management Limited David Bryant made the biggest insider purchase in the last 12 months. That single transaction was for AU$500k worth of shares at a price of AU$1.71 each. So it's clear an insider wanted to buy, at around the current price, which is AU$2.01. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Rural Funds Group insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders bought 598k shares for a total of AU$1.0m. Rural Funds Group insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Rural Funds Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Rural Funds Group Have Bought Stock Recently
It's good to see that Rural Funds Group insiders have made notable investments in the company's shares. Overall, three insiders shelled out AU$1.0m for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership of Rural Funds Group
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Rural Funds Group insiders own 1.0% of the company, worth about AU$6.5m. We consider this fairly low insider ownership.
So What Do The Rural Funds Group Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Rural Funds Group stock. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Rural Funds Group.
But note: Rural Funds Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
