Yahoo Finance Ford Motor Insiders Added US$2.31m Of Stock To Their Holdings
Quite a few insiders have dramatically grown their holdings in Ford Motor Company (NYSE:F) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Ford Motor
Ford Motor Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chief Advanced Product Development & Technology Officer John Field bought US$2.0m worth of shares at a price of US$11.05 per share. Even though the purchase was made at a significantly lower price than the recent price (US$12.76), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months insiders purchased 206.79k shares for US$2.3m. But they sold 108.13k shares for US$1.3m. Overall, Ford Motor insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At Ford Motor Have Sold Stock Recently
Over the last three months, we've seen notably more insider selling, than insider buying, at Ford Motor. In total, Director Jon Huntsman sold US$982k worth of shares in that time. On the other hand we note Lead Independent Director John Thornton bought US$299k worth of shares. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
Does Ford Motor Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Ford Motor insiders own about US$640m worth of shares (which is 1.3% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Ford Motor Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Ford Motor, in the last three months. On the other hand, the insider transactions over the last year are encouraging. And insider ownership remains quite considerable. So we're happy to look past recent trading. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in Ford Motor.
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 of direct interests only, but not derivative transactions or indirect interests.
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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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