Insider Stock Buying Reaches UK£452.7k On Flowtech Fluidpower
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Flowtech Fluidpower plc's (LON:FLO) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Flowtech Fluidpower
The Last 12 Months Of Insider Transactions At Flowtech Fluidpower
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chair Roger McDowell for UK£248k worth of shares, at about UK£0.83 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.79). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Flowtech Fluidpower insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Flowtech Fluidpower Have Bought Stock Recently
Over the last quarter, Flowtech Fluidpower insiders have spent a meaningful amount on shares. In total, insiders bought UK£50k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does Flowtech Fluidpower Boast High Insider Ownership?
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. From looking at our data, insiders own UK£1.2m worth of Flowtech Fluidpower stock, about 2.4% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Flowtech Fluidpower Tell Us?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Flowtech Fluidpower insiders bought more shares in the company. 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 3 warning signs for Flowtech Fluidpower you should be aware of, and 1 of these is a bit unpleasant.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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.
