Insider Buying: PhenixFIN Chairman & CEO Bought US$51k Of Shares

Even if it's not a huge purchase, we think it was good to see that David Lorber, the Chairman & CEO of PhenixFIN Corporation (NASDAQ:PFX) recently shelled out US$51k to buy stock, at US$44.67 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At PhenixFIN

In fact, the recent purchase by Chairman & CEO David Lorber was not their only acquisition of PhenixFIN shares this year. They previously made an even bigger purchase of US$108k worth of shares at a price of US$54.35 per share. That means that even when the share price was higher than US$45.84 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While PhenixFIN insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for PhenixFIN

PhenixFIN is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does PhenixFIN Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 21% of PhenixFIN shares, worth about US$18m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The PhenixFIN Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of PhenixFIN we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, PhenixFIN has 6 warning signs (and 3 which are a bit unpleasant) we think you should know about.

Of course PhenixFIN may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.