Bullish Fluence Insiders Rewarded As Their Investment Rises To US$13.3m

Fluence Corporation Limited (ASX:FLC) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 10% resulting in a AU$9.7m addition to the company’s market value. In other words, the original US$11.2m purchase is now worth US$13.3m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Fluence

The Last 12 Months Of Insider Transactions At Fluence

The Chairman & Strategic Board Advisor Douglas Brown made the biggest insider purchase in the last 12 months. That single transaction was for AU$7.4m worth of shares at a price of AU$0.08 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.095. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Fluence insiders were buying shares, but not selling. 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!

Fluence is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Fluence Insiders Bought Stock Recently

It's good to see that Fluence insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$11m worth of shares. This could be interpreted as suggesting a positive outlook.

Does Fluence 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 29% of Fluence shares, worth about AU$30m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Fluence Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Fluence shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Fluence (including 2 which are a bit unpleasant).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

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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.