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Trade Alert: The Independent Director Of Farmland Partners Inc. (NYSE:FPI), John Good, Has Just Spent US$80k Buying 55% More Shares

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Simply Wall St
·3 min read
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Whilst it may not be a huge deal, we thought it was good to see that the Farmland Partners Inc. (NYSE:FPI) Independent Director, John Good, recently bought US$80k worth of stock, for US$8.03 per share. While that isn't the hugest buy, it actually boosted their shareholding by 55%, which is good to see.

See our latest analysis for Farmland Partners

The Last 12 Months Of Insider Transactions At Farmland Partners

Notably, that recent purchase by John Good is the biggest insider purchase of Farmland Partners shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$8.24. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Farmland Partners insiders decided to buy shares at close to current prices.

Farmland Partners insiders may have bought shares in the last year, but they didn't sell any. They paid about US$7.01 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

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).

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. Farmland Partners insiders own about US$25m worth of shares. That equates to 10% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Farmland Partners Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Farmland Partners we think they are probably pretty confident of a bright 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. At Simply Wall St, we found 2 warning signs for Farmland Partners that deserve your attention before buying any shares.

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.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.