Sergey Lukyanov Bought 4.5% More Shares In Freedom Holding

Those following along with Freedom Holding Corp. (NASDAQ:FRHC) will no doubt be intrigued by the recent purchase of shares by Sergey Lukyanov, Chairman of the Management Board of Freedom Finance JSC & Freedom Finance Global PLC of the company, who spent a stonking US$983k on stock at an average price of US$172. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 4.5%.

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Freedom Holding Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chief Financial Officer, Evgeny Ler, for US$3.1m worth of shares, at about US$159 per share. That means that even when the share price was below the current price of US$173, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 37% of Evgeny Ler's holding.

Happily, we note that in the last year insiders paid US$2.1m for 13.23k shares. But they sold 89.69k shares for US$13m. In total, Freedom Holding insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Freedom Holding

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Freedom Holding insiders own 70% of the company, currently worth about US$7.5b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Freedom Holding Insiders?

The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Freedom Holding insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Freedom Holding. In terms of investment risks, we've identified 2 warning signs with Freedom Holding and understanding these should be part of your investment process.

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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.