When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in FD Technologies Plc’s (LON:FDP) instance, it’s good news for shareholders.
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 FD Technologies
FD Technologies Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO & Director Seamus Keating for UK£97k worth of shares, at about UK£12.90 per share. Although we like to see insider buying, we note that this large purchase was significantly below the recent price of UK£ 17.78. While it does suggest that insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
While FD Technologies insiders bought shares during the last year, they didn’t sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individually and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does FD Technologies Boast High 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 FD Technologies insiders own 14% of the company, worth about UK£69m. 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 Does This Data Suggest About FD Technologies Insiders?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in FD Technologies and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing FD Technologies. Every company has risks, and we’ve spotted 1 warning sign for FD Technologies you should know about.
of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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