Yahoo Finance Fidelity National Information Services, Inc. (NYSE:FIS) is up 3.0%, but insiders still continue to see a loss of US$319k on their US$1.4m investment
Insiders who bought US$1.4m worth of Fidelity National Information Services, Inc. (NYSE:FIS) stock in the last year recovered part of their losses as the stock rose by 3.0% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$319k since the time of purchase.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Fidelity National Information Services
Fidelity National Information Services Insider Transactions Over The Last Year
The Independent Director Brian Shea made the biggest insider purchase in the last 12 months. That single transaction was for US$158k worth of shares at a price of US$68.72 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$51.47). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Fidelity National Information Services insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and 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!
Fidelity National Information Services is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Fidelity National Information Services Insiders Bought Stock Recently
Over the last quarter, Fidelity National Information Services insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$1.4m worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Fidelity National Information Services insiders own 0.3% of the company, worth about US$85m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Fidelity National Information Services Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Fidelity National Information Services shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Fidelity National Information Services and understanding this should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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.
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