Ford Motor Insiders Added US$2.31m Of Stock To Their Holdings

Over the last year, a good number of insiders have significantly increased their holdings in Ford Motor Company (NYSE:F). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Ford Motor

Ford Motor Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chief Advanced Product Development & Technology Officer John Field for US$2.0m worth of shares, at about US$11.05 per share. That means that an insider was happy to buy shares at around the current price of US$11.94. 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. Happily, the Ford Motor insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 206.79k shares worth US$2.3m. But they sold 108.13k shares for US$1.3m. In total, Ford Motor insiders bought more than they sold over the last year. 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!

Ford Motor is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Ford Motor Have Sold Stock Recently

We've seen more insider selling than insider buying at Ford Motor recently. In that time, Director Jon Huntsman dumped US$982k worth of shares. Meanwhile Lead Independent Director John Thornton bought US$299k worth. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Ford Motor insiders own 1.3% of the company, currently worth about US$627m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Ford Motor Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Ford Motor, in the last three months. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. While it's good to be aware of 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. Every company has risks, and we've spotted 3 warning signs for Ford Motor (of which 1 is potentially serious!) you should know about.

But note: Ford Motor 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.

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