Investors who take an interest in Fluidigm Corporation (NASDAQ:FLDM) should definitely note that the Independent Director, Nicolas Barthelemy, recently paid US$3.05 per share to buy US$244k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 160%.
Fluidigm Insider Transactions Over The Last Year
Notably, that recent purchase by Nicolas Barthelemy is the biggest insider purchase of Fluidigm shares that we've seen in the last year. That means that even when the share price was higher than US$2.45 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Fluidigm insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$3.61. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by 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!
Fluidigm 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 Fluidigm
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Fluidigm insiders own 1.1% of the company, worth about US$2.0m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Fluidigm Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Fluidigm insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for Fluidigm (of which 1 can't be ignored!) you should know about.
Of course Fluidigm 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, but not derivative transactions.
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