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How Much Are Fox Factory Holding Corp. (NASDAQ:FOXF) Insiders Taking Off The Table? – Simply Wall St News

We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Fox Factory Holding Corp. (NASDAQ:FOXF), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University found that ‘insider purchases earn abnormal returns of more than 6% per year.

See our latest analysis for Fox Factory Holding

Fox Factory Holding Insider Transactions Over The Last Year

The Executive Chairman, Larry Enterline, made the biggest insider sale in the last 12 months. That single transaction was for US$4.8m worth of shares at a price of US$69.01 each. So we know that an insider sold shares at around the present share price of US$68.10. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year Fox Factory Holding insiders didn’t buy any company stock. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NasdaqGS:FOXF Recent Insider Trading, December 23rd 2019
NasdaqGS:FOXF Recent Insider Trading, December 23rd 2019

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders at Fox Factory Holding Have Sold Stock Recently

The last quarter saw substantial insider selling of Fox Factory Holding shares. In total, Executive Chairman Larry Enterline dumped US$816k worth of shares in that time, and we didn’t record any purchases whatsoever. Overall this makes us a bit cautious, but it’s not the be all and end all.

Does Fox Factory Holding Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Fox Factory Holding insiders own 0.2% of the company, worth about US$5.8m. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Fox Factory Holding Insiders?

An insider hasn’t bought Fox Factory Holding stock in the last three months, but there was some selling. And there weren’t any purchases to give us comfort, over the last year. But since Fox Factory Holding is profitable and growing, we’re not too worried by this. Insiders own relatively few shares in the company, and when you consider the sales, we’re not particularly excited about the stock. As the saying goes, only fools rush in. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at [email protected]. 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.

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. Thank you for reading.

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