Investors who take an interest in Flow Traders N.V. (AMS:FLOW) should definitely note that the Chief Trading Officer & Member of the Management Board, Folkert Joling, recently paid €28.40 per share to buy €284k worth of the stock. Although the purchase only increased their holding by 2.6%, it is still a solid purchase in our view.
Check out our latest analysis for Flow Traders
The Last 12 Months Of Insider Transactions At Flow Traders
Notably, that recent purchase by Folkert Joling is the biggest insider purchase of Flow Traders shares that we’ve seen in the last year. That means that an insider was happy to buy shares at around the current price of €30.40. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. In this case we’re pleased to report that the insider bought shares at close to current prices. Folkert Joling was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by 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!
ENXTAM:FLOW Recent Insider Trading May 3rd 2020
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).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.2% of Flow Traders shares, worth about €44m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Flow Traders Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Flow Traders shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Be aware that Flow Traders is showing 4 warning signs in our investment analysis, and 2 of those don’t sit too well with us…
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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