Insider Sells Freedom Holding Stock

Shares of Freedom Holding Inc FRHC fell by 2.9% from the previous closing price. A Form 4 filing filed with the SEC on Thursday, December 17 showed that Ler Evgeny sold 8,471 shares at $45.09 on Monday, Dec 14, and sold 10,284 shares at $41.33 on Tuesday, Dec 15.The transaction moved the executive's stake in Freedom Holding Inc. to 30,284 shares.

Why Insider Transactions Are Important?

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

Insiders buying stock after a notable sell off can indicate an insider's long-term belief in the success of the company; insiders buying stock at new highs can be an indication the exec doesn't feel the stock is overvalued. Insiders who sell stock at new lows could be anticipating some capitulation moment. If the insider sells at new highs, it could point to the intention to "take some profit" and "lock in a gain."

Transaction Codes To Focus On

Investors prefer focusing on transactions which take place in the open market, indicated in the Form 4 with codes P for purchase and S for sale. If the transaction was an open-market transaction, that means that the insider made a concious decision for the company's stock moving forward.

Transaction codes other than P or S are often viewed with less conviction as they are often not tied to a decision by the exec. As an example, transaction code C indicates the conversion of an option. Transaction code A indicates the insider may have been forced to sell shares in order to receive compensation the exec was promised upon being hired by a company.