Trade Alert: The Independent Director Of Federal Signal Corporation (NYSE:FSS), John Workman, Has Just Spent US$147k Buying Shares

Potential Federal Signal Corporation (NYSE:FSS) shareholders may wish to note that the Independent Director, John Workman, recently bought US$147k worth of stock, paying US$29.48 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 12%.

Check out our latest analysis for Federal Signal

The Last 12 Months Of Insider Transactions At Federal Signal

Over the last year, we can see that the biggest insider sale was by the Non-Executive Chairman, Dennis Martin, for US$1.5m worth of shares, at about US$24.87 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$30.34. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 19% of Dennis Martin's holding.

All up, insiders sold more shares in Federal Signal than they bought, over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Federal Signal better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Federal Signal Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.8% of Federal Signal shares, worth about US$32m. 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 Federal Signal Tell Us?

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 more recent transactions are a positive, but Federal Signal insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course Federal Signal may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.