Favourable Signals For Flowtech Fluidpower: Numerous Insiders Acquired Stock
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 Flowtech Fluidpower plc (LON:FLO), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Flowtech Fluidpower
The Last 12 Months Of Insider Transactions At Flowtech Fluidpower
The Independent Non-Executive Chair (Leave of Absence) Roger McDowell made the biggest insider purchase in the last 12 months. That single transaction was for UK£248k worth of shares at a price of UK£0.83 each. Even though the purchase was made at a significantly lower price than the recent price (UK£0.92), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Flowtech Fluidpower insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Flowtech Fluidpower 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.
Flowtech Fluidpower Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Flowtech Fluidpower. In total, insiders bought UK£393k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
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. We usually like to see fairly high levels of insider ownership. Our data suggests Flowtech Fluidpower insiders own 2.9% of the company, worth about UK£1.6m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Flowtech Fluidpower Tell Us?
It is good to see recent purchasing. 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Flowtech Fluidpower insiders are expecting a bright future. 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. Every company has risks, and we've spotted 4 warning signs for Flowtech Fluidpower (of which 1 is a bit unpleasant!) you should know about.
Of course Flowtech Fluidpower may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
