Recent gains in FTC Solar, Inc. (NASDAQ:FTCI) help add back some value on insider purchases worth US$2.1m, still down US$419k
Insiders who bought US$2.1m worth of FTC Solar, Inc. (NASDAQ:FTCI) stock in the last year have seen some of their losses recouped as the stock gained 13% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$419k since the time of purchase.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for FTC Solar
The Last 12 Months Of Insider Transactions At FTC Solar
Notably, that recent purchase by insider Thurman Rodgers was not the only time they bought FTC Solar shares this year. Earlier in the year, they paid US$3.34 per share in a US$1.2m purchase. That means that an insider was happy to buy shares at above the current price of US$2.38. 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. 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.
Over the last year, we can see that insiders have bought 707.81k shares worth US$2.1m. But they sold 520.80k shares for US$1.5m. Overall, FTC Solar insiders were net buyers during the last year. The average buy price was around US$2.97. 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 companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 FTC Solar Have Sold Stock Recently
Over the last three months, we've seen notably more insider selling, than insider buying, at FTC Solar. We note insiders cashed in US$1.3m worth of shares. On the other hand we note insider Thurman Rodgers bought US$202k worth of shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the company has been fully valued in recent months.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. FTC Solar insiders own 42% of the company, currently worth about US$105m 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.
So What Do The FTC Solar Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at FTC Solar, in the last three months. In contrast, they appear keener if you look at the last twelve months. On top of that, insiders own a significant portion of the company. So we're happy to look past recent trading. 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. You'd be interested to know, that we found 4 warning signs for FTC Solar and we suggest you have a look.
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, 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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