Yahoo Finance Pleasing Signs As A Number Of Insiders Buy Fitzroy River Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Fitzroy River Corporation Limited's (ASX:FZR) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Fitzroy River
The Last 12 Months Of Insider Transactions At Fitzroy River
The Independent Non-Executive Director Susan Thomas made the biggest insider purchase in the last 12 months. That single transaction was for AU$421k worth of shares at a price of AU$0.13 each. So it's clear an insider wanted to buy, at around the current price, which is AU$0.14. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Fitzroy River insiders decided to buy shares at close to current prices.
Fitzroy River insiders may have bought shares in the last year, but they didn't sell any. 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!
Fitzroy River is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Fitzroy River insiders own 48% of the company, worth about AU$7.1m. 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 Fitzroy River Tell Us?
The fact that there have been no Fitzroy River insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Fitzroy River insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fitzroy River. For example, Fitzroy River has 4 warning signs (and 3 which shouldn't be ignored) we think you should know about.
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.
