This Insider Has Just Sold Shares In Fletcher Building Limited (NZSE:FBU)

By
Simply Wall St
Published
July 07, 2021
NZSE:FBU
Source: Shutterstock

We note that the Fletcher Building Limited (NZSE:FBU) Chief Executive of Residential & Development, Steve Evans, recently sold NZ$65k worth of stock for NZ$7.53 per share. However we note that the sale only shrunk their holding by 3.1%.

See our latest analysis for Fletcher Building

Fletcher Building Insider Transactions Over The Last Year

Notably, that recent sale by Steve Evans is the biggest insider sale of Fletcher Building shares that we've seen in the last year. That means that an insider was selling shares at around the current price of NZ$7.26. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NZSE:FBU Insider Trading Volume July 7th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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. It appears that Fletcher Building insiders own 0.5% of the company, worth about NZ$30m. 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 Fletcher Building Tell Us?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fletcher Building. Every company has risks, and we've spotted 1 warning sign for Fletcher Building you should know about.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.