Even if it's not a huge purchase, we think it was good to see that Carol Johnson, the Independent Director of FTS International, Inc. (NYSE:FTSI) recently shelled out US$50k to buy stock, at US$0.95 per share. While that isn't the hugest buy, it actually boosted their shareholding by 750%, which is good to see.
The Last 12 Months Of Insider Transactions At FTS International
Notably, that recent purchase by Carol Johnson is the biggest insider purchase of FTS International shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$0.70. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Carol Johnson was the only individual insider to buy over the year.
You can see the insider transactions (by 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!
FTS International 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 of FTS International
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. Based on our data, FTS International insiders have about 1.4% of the stock, worth approximately US$1.1m. I generally like to see higher levels of ownership.
So What Do The FTS International Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on FTS International stock. 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 3 warning signs with FTS International and understanding these should be part of your investment process.
But note: FTS International 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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