Nigel Lingwood Spends UK£90k On Forterra Stock

Investors who take an interest in Forterra plc (LON:FORT) should definitely note that the Chairman, Nigel Lingwood, recently paid UK£1.80 per share to buy UK£90k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At Forterra

In fact, the recent purchase by Nigel Lingwood was the biggest purchase of Forterra 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£1.83 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Forterra share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 88.55k shares worth UK£152k. But insiders sold 37.62k shares worth UK£59k. In total, Forterra insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Forterra

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Forterra insiders have about 0.3% of the stock, worth approximately UK£1.1m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

What Might The Insider Transactions At Forterra Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Forterra stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Forterra. Every company has risks, and we've spotted 1 warning sign for Forterra you should know about.

But note: Forterra 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 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.