James Meyer Bought 5.4% More Shares In FreightCar America \
Whilst it may not be a huge deal, we thought it was good to see that the FreightCar America, Inc. (NASDAQ:RAIL) President, James Meyer, recently bought US$93k worth of stock, for US$2.86 per share. However, it only increased their shares held by 5.4%, and it wasn't a huge purchase by absolute value, either.
Check out our latest analysis for FreightCar America
The Last 12 Months Of Insider Transactions At FreightCar America
Notably, that recent purchase by James Meyer is the biggest insider purchase of FreightCar America shares that we've seen in the last year. That implies that an insider found the current price of US$2.99 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
FreightCar America insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Does FreightCar America Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that FreightCar America insiders own 10% of the company, worth about US$5.5m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
So What Do The FreightCar America Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that FreightCar America insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing FreightCar America. To that end, you should learn about the 4 warning signs we've spotted with FreightCar America (including 1 which shouldn't be ignored).
Of course FreightCar America 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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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.
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