Have Insiders Sold Fortis Shares Recently?

Some Fortis Inc. (TSE:FTS) shareholders may be a little concerned to see that insider James Laurito recently sold a substantial CA$1.4m worth of stock at a price of CA$61.17 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 54% of their entire holding.

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The Last 12 Months Of Insider Transactions At Fortis

In fact, the recent sale by James Laurito was the biggest sale of Fortis shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of CA$62.21, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 54% of James Laurito's stake.

Over the last year, we can see that insiders have bought 35.62k shares worth CA$1.9m. But insiders sold 31.28k shares worth CA$1.8m. In the last twelve months there was more buying than selling by Fortis insiders. 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!

Fortis is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Fortis insiders own about CA$31m worth of shares. That equates to 0.1% 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 Fortis Tell Us?

The insider sales have outweighed the insider buying, at Fortis, in the last three months. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So the recent selling doesn't worry us too much. 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 help with this, we've discovered 3 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in Fortis.

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 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.