Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of James Fisher and Sons plc (LON:FSJ), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At James Fisher and Sons
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Eoghan O'Lionaird for UK£100k worth of shares, at about UK£4.19 per share. That means that even when the share price was higher than UK£3.69 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months James Fisher and Sons insiders were buying shares, but not selling. They paid about UK£5.91 on average. These transactions suggest that insiders have considered the current price attractive. 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!
James Fisher and Sons is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of James Fisher and Sons
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data isn't picking up on much insider ownership at James Fisher and Sons, though insiders do hold about UK£205k worth of shares. We might be missing something but that seems like very low insider ownership.
So What Do The James Fisher and Sons Insider Transactions Indicate?
It doesn't really mean much that no insider has traded James Fisher and Sons shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more James Fisher and Sons stock. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for James Fisher and Sons you should be aware of.
But note: James Fisher and Sons may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.