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Great news for Freehold Royalties Ltd. (TSE:FRU): Insiders acquired stock in large numbers last year

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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Freehold Royalties Ltd.'s (TSE:FRU) case, it's fantastic news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Freehold Royalties

Freehold Royalties Insider Transactions Over The Last Year

The Independent Director Maureen Howe made the biggest insider purchase in the last 12 months. That single transaction was for CA$314k worth of shares at a price of CA$14.93 each. That implies that an insider found the current price of CA$16.14 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 Freehold Royalties share holders is that insiders were buying at near the current price.

While Freehold Royalties insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

Freehold Royalties is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Freehold Royalties Insiders Bought Stock Recently

We saw some Freehold Royalties insider buying shares in the last three months. insider Ian Hantke bought CA$20k worth of shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

Does Freehold Royalties Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 0.4% of Freehold Royalties shares, worth about CA$8.8m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Freehold Royalties Insiders?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Freehold Royalties stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Freehold Royalties. Be aware that Freehold Royalties is showing 3 warning signs in our investment analysis, and 1 of those is concerning...

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.

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.