Trade Alert: The Independent Director Of FTS International, Inc. (NYSE:FTSI), Carol Johnson, Has Just Spent US$50k Buying Shares

Even if it's not a huge purchase, we think it was good to see that Carol Johnson, the Independent Director of FTS International, Inc. (NYSE:FTSI) recently shelled out US$50k to buy stock, at US$0.95 per share. While that isn't the hugest buy, it actually boosted their shareholding by 750%, which is good to see.

Check out our latest analysis for FTS International

FTS International Insider Transactions Over The Last Year

Notably, that recent purchase by Carol Johnson is the biggest insider purchase of FTS International shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$0.70. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Carol Johnson.

The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, FTS International insiders have about 1.4% of the stock, worth approximately US$1.1m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At FTS International Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on FTS International stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that FTS International has 3 warning signs and it would be unwise to ignore these.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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