FTC Solar Insiders Placed Bullish Bets Worth US$1.47m
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in FTC Solar, Inc.'s (NASDAQ:FTCI) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for FTC Solar
FTC Solar Insider Transactions Over The Last Year
The Chief Commercial Officer, Patrick Cook, made the biggest insider sale in the last 12 months. That single transaction was for US$537k worth of shares at a price of US$2.34 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$0.51). So it may not shed much light on insider confidence at current levels.
Over the last year, we can see that insiders have bought 1.18m shares worth US$1.5m. But they sold 530.03k shares for US$1.3m. Overall, FTC Solar insiders were net buyers during the last year. They paid about US$1.25 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, 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.
FTC Solar Insiders Are Selling The Stock
Over the last three months, we've seen a bit of insider selling at FTC Solar. insider Robert Morris divested only US$14k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the amount sold isn't enough for us to put any weight on it.
Insider Ownership Of FTC Solar
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. Insiders own 33% of FTC Solar shares, worth about US$21m. 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 Do The FTC Solar Insider Transactions Indicate?
While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in FTC Solar and their transactions don't cause us concern. 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 4 warning signs for FTC Solar you should be aware of, and 1 of them doesn't sit too well with us.
But note: FTC Solar 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
