Some Freedom Holding Corp. (NASDAQ:FRHC) shareholders may be a little concerned to see that the Chief Executive Officer of Freedom Life, Azamat Yerdessov, recently sold a substantial US$2.6m worth of stock at a price of US$155 per share. However, that sale only accounted for 6.9% of their holding, so arguably it doesn't say much about their conviction.

The Last 12 Months Of Insider Transactions At Freedom Holding

Notably, that recent sale by Azamat Yerdessov is the biggest insider sale of Freedom Holding shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$142. So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 33.23k shares for US$4.5m. But insiders sold 22.21k shares worth US$3.5m. In total, Freedom Holding insiders bought more than they sold over the last year. Their average price was about US$135. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Freedom Holding is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Freedom Holding insiders own 70% of the company, worth about US$6.1b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Freedom Holding Tell Us?

An insider sold Freedom Holding shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Freedom Holding is showing 3 warning signs in our investment analysis, and 2 of those make us uncomfortable...

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 of direct interests only, but not derivative transactions or indirect interests.

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.