Flowtech Fluidpower Independent Non-Executive Chair Acquires 4.6% More Stock

Even if it's not a huge purchase, we think it was good to see that Roger McDowell, the Independent Non-Executive Chair of Flowtech Fluidpower plc (LON:FLO) recently shelled out UK£45k to buy stock, at UK£0.90 per share. However, it only increased their shares held by 4.6%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Flowtech Fluidpower

Flowtech Fluidpower Insider Transactions Over The Last Year

In fact, the recent purchase by Roger McDowell was the biggest purchase of Flowtech Fluidpower shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of UK£0.93 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Flowtech Fluidpower insiders decided to buy shares at close to current prices.

Flowtech Fluidpower insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Flowtech Fluidpower

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Flowtech Fluidpower insiders have about 2.5% of the stock, worth approximately UK£1.4m. We consider this fairly low insider ownership.

So What Do The Flowtech Fluidpower Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Flowtech Fluidpower insiders are doubting the company. 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. When we did our research, we found 5 warning signs for Flowtech Fluidpower (1 is a bit unpleasant!) that we believe deserve your full attention.

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.