Those following along with Fortescue Metals Group Limited (ASX:FMG) will no doubt be intrigued by the recent purchase of shares by John Andrew Forrest, Founder & Chairman of the Board of the company, who spent a stonking AU$243m on stock at an average price of AU$10.98. That purchase boosted their holding by 122%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
See our latest analysis for Fortescue Metals Group
Fortescue Metals Group Insider Transactions Over The Last Year
Notably, that recent purchase by John Andrew Forrest is the biggest insider purchase of Fortescue Metals Group shares that we’ve seen in the last year. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being AU$10.08). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. To us, it’s very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. John Andrew Forrest was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by 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).
Insider Ownership of Fortescue Metals Group
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Fortescue Metals Group insiders own about AU$506m worth of shares (which is 1.6% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Fortescue Metals Group Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Fortescue Metals Group. Looks promising! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Fortescue Metals Group.
But note: Fortescue Metals Group 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
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