in the meantime Fox Factory Holding Corp. (NASDAQ:FOXF) stockholders had a strong week as the stock rose 3.1%. We should not let our guard down. Although the price was relatively low, insiders have opted to sell US$1.4 million worth of shares in the past 12 months. This could be a sign of impending weakness.
While insider trading is not the most important thing when it comes to long-term investing, we believe it is perfectly logical to monitor insider behavior.
Our analysis FOXF can be overrated!
Fox Factory engaged in insider trading in the past year
The largest insider sale in the last 12 months came when Specialty Sports Group president Christopher Tutton sold $831,000 worth of stock at $104 a share. This meant that the insider was selling the stock at just below the current price ($109). If an insider sells below the current price, it suggests they thought the lower price was fair. This makes us wonder what they think of the recent (higher) valuation. However, while insider selling can be disappointing, it is only a weak signal. This one sale of his was his 100% stake in Christopher Tutton.
Fox Factory Holding insiders did not buy any shares last year. The chart below shows insider trading (by company and individual) over the past year. If you want to know exactly who sold, how much and when, click the chart below.
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Fox Factory holding insider is selling stake
The past three months have seen insider selling of Fox Factory Holding. Thomas Fletcher, President of Business and Corporate Strategy at the Powered Vehicles Group, said in just a short time he had a US$25,000 stake in the sale. Neither the absence of buying nor the presence of selling is reassuring. However, selling is not enough to serve as a signal.
Does Fox Factory Holding boast a high insider ownership rate?
Another way to test the alignment of company leaders with other shareholders is to look at the number of shares they own. If an insider owns a sizeable amount of stock in a company, I think that’s a good sign. According to our data, a Fox Factory Holding insider owns his 0.1% of the company, worth about $6.5 million. We generally want a higher level of insider ownership.
What does Fox Factory holding insider trading indicate?
Our data shows a small increase in insider selling over the past three months, but no insider buying. But sales aren’t as big as we’re worried about. I’m a little cautious about insider sales at Fox Factory Holding. Also note that insider ownership is pretty low compared to other companies as far as we can see. In addition to knowing about ongoing insider trading, it is useful to identify the risks facing Fox Factory Holding.During the analysis, Fox Factory Holding 1 warning sign Ignoring this is not wise.
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For the purposes of this article, an insider is an individual who reports a transaction to the relevant regulatory body. Currently, we consider open market transactions and private disposals, but not derivative transactions.
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