Whilst it may not be a huge deal, we thought it was good to see that the Fleetwood Limited (ASX:FWD) Chair of Board, John Klepec, recently bought AU$53k worth of stock, for AU$2.65 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
The Last 12 Months Of Insider Transactions At Fleetwood
Notably, that recent purchase by John Klepec is the biggest insider purchase of Fleetwood shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$2.62. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Fleetwood insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Fleetwood is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Fleetwood Boast High 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. Fleetwood insiders own about AU$27m worth of shares. That equates to 11% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Fleetwood Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Fleetwood insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fleetwood. Be aware that Fleetwood is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...
Of course Fleetwood may not be the best stock to buy. So you may wish to see this free collection of high quality 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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