Insider Spends US$97k Buying More Shares In FTC Solar

Whilst it may not be a huge deal, we thought it was good to see that the FTC Solar, Inc. (NASDAQ:FTCI) Chief Operating Officer, Sasan Aminpour, recently bought US$97k worth of stock, for US$0.44 per share. That purchase might not be huge but it did increase their holding by 27%.

Check out 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 we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$0.44. So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid US$1.8m for 969.25k shares. But insiders sold 911.76k shares worth US$2.5m. In total, FTC Solar insiders sold more than they bought over the last year. They sold for an average price of about US$2.73. It is certainly not great to see that insiders have sold shares in the company. But we note that the selling, on average, was at well above the recently traded price of US$0.44. 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!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. We usually like to see fairly high levels of insider ownership. Insiders own 33% of FTC Solar shares, worth about US$18m. 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 Do The FTC Solar Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. We don't take much heart from transactions by FTC Solar insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. 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. For example, FTC Solar has 4 warning signs (and 1 which can't be ignored) we think you should know about.

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.