We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Forrester Research, Inc. (NASDAQ:FORR).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
The Last 12 Months Of Insider Transactions At Forrester Research
Independent Director Neil Bradford made the biggest insider purchase in the last 12 months. That single transaction was for US$99k worth of shares at a price of US$32.63 each. That means that an insider was happy to buy shares at above the current price of US$31.66. 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. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Neil Bradford was the only individual insider to buy shares in the last twelve months.
All up, insiders sold more shares in Forrester Research than they bought, over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Forrester Research better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Forrester Research Insiders Bought Stock Recently
Over the last quarter, Forrester Research insiders have spent a meaningful amount on shares. Independent Director Neil Bradford spent US$99k on stock, and there wasn't any selling. That shows some optimism about the company's future.
Does Forrester Research Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Forrester Research insiders own 43% of the company, currently worth about US$251m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Forrester Research Tell Us?
It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The recent buying by an insider , along with high insider ownership, suggest that Forrester Research insiders are fairly aligned, and optimistic. Of course, the future is what matters most. So if you are interested in Forrester Research, you should check out this free report on analyst forecasts for the company.
But note: Forrester Research 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, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.