Federal Signal Insider Lowered Holding By 31% During Last Year

From what we can see, insiders were net sellers in Federal Signal Corporation's (NYSE:FSS ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Federal Signal

In the last twelve months, the biggest single sale by an insider was when the Lead Independent Director, Brenda Reichelderfer, sold US$2.4m worth of shares at a price of US$92.99 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$71.37). So it may not shed much light on insider confidence at current levels. Brenda Reichelderfer was the only individual insider to sell over the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Federal Signal

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insiders At Federal Signal Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Federal Signal. President Jennifer Sherman spent US$103k on stock, and there wasn't any selling. That shows some optimism about the company's future.

Does Federal Signal Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Federal Signal insiders own 2.5% of the company, currently worth about US$108m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Federal Signal Insiders?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The recent buying by an insider , along with high insider ownership, suggest that Federal Signal insiders are fairly aligned, and optimistic. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Federal Signal .

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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.