Over the past year, many Fox Factory Holding Corp. (NASDAQ:FOXF) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Fox Factory Holding Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the CEO & Director, Michael Dennison, for US$1.0m worth of shares, at about US$114 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$52.18). So it may not tell us anything about how insiders feel about the current share price.
In the last year Fox Factory Holding insiders didn't buy any company stock. 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!
I will like Fox Factory Holding better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Fox Factory Holding Boast High Insider Ownership?
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.3% of Fox Factory Holding shares, worth about US$6.2m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Fox Factory Holding Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Fox Factory Holding insiders. And we're not picking up on high enough insider ownership to give us any comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fox Factory Holding. In terms of investment risks, we've identified 2 warning signs with Fox Factory Holding and understanding these should be part of your investment process.
But note: Fox Factory Holding 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 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.