Director of FTC Solar Ahmad Chatila Buys 12% More Shares

Even if it's not a huge purchase, we think it was good to see that Ahmad Chatila, the Director of FTC Solar, Inc. (NASDAQ:FTCI) recently shelled out US$51k to buy stock, at US$0.55 per share. That purchase might not be huge but it did increase their holding by 12%.

See our latest analysis for FTC Solar

FTC Solar Insider Transactions Over The Last Year

The Chief Commercial Officer, Patrick Cook, made the biggest insider sale in the last 12 months. That single transaction was for US$537k worth of shares at a price of US$2.34 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$0.52). So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$1.6m for 1.46m shares. But they sold 439.30k shares for US$1.1m. In the last twelve months there was more buying than selling by FTC Solar insiders. The average buy price was around US$1.11. This is nice to see since it implies that insiders might see value around current prices. 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!

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 FTC Solar Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. FTC Solar insiders own about US$20m worth of shares. That equates to 33% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About FTC Solar Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest FTC Solar 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. At Simply Wall St, we've found that FTC Solar has 4 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.

But note: FTC Solar 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.