Freeport-McMoRan Inc. (NYSE:FCX) shareholders (or potential shareholders) will be happy to see that the Director, John Stephens, recently bought a whopping US$504k worth of stock, at a price of US$11.19. That purchase boosted their holding by 3782%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
Freeport-McMoRan Insider Transactions Over The Last Year
Vice Chairman Richard Adkerson made the biggest insider purchase in the last 12 months. That single transaction was for US$1.7m worth of shares at a price of US$10.14 each. That means that an insider was happy to buy shares at around the current price of US$11.10. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Freeport-McMoRan share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 267.00k shares worth US$2.8m. But they sold 7425 for US$86k. In total, Freeport-McMoRan insiders bought more than they sold over the last year. You can see the insider transactions (by 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!
Freeport-McMoRan 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.
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Freeport-McMoRan insiders own about US$46m worth of shares. That equates to 0.3% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Freeport-McMoRan Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Freeport-McMoRan insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in Freeport-McMoRan, you should check out this free report on analyst forecasts for the company.
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, but not derivative transactions.
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