- New Zealand
Insider Buying: The Fletcher Building Limited (NZSE:FBU) Independent Non-Executive Director Just Bought 100% More Shares
Even if it's not a huge purchase, we think it was good to see that Barbara Chapman, the Independent Non-Executive Director of Fletcher Building Limited (NZSE:FBU) recently shelled out NZ$86k to buy stock, at NZ$4.30 per share. While that isn't the hugest buy, it actually boosted their shareholding by 100%, which is good to see.
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Fletcher Building Insider Transactions Over The Last Year
In fact, the recent purchase by Barbara Chapman was the biggest purchase of Fletcher Building shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of NZ$4.26. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Fletcher Building insiders were buying shares, but not selling. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Fletcher Building Boast High 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. Insiders own 0.5% of Fletcher Building shares, worth about NZ$16m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Fletcher Building Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Fletcher Building insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 3 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Fletcher Building.
Of course Fletcher Building 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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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.
Fletcher Building Limited, together with its subsidiaries, manufactures and distributes building products in New Zealand, Australia, and internationally.
Very undervalued with excellent balance sheet and pays a dividend.