Lindsay Rosenwald Is The Executive Chairman of Fortress Biotech, Inc. (NASDAQ:FBIO) And They Just Picked Up 18% More Shares

Those following along with Fortress Biotech, Inc. (NASDAQ:FBIO) will no doubt be intrigued by the recent purchase of shares by Lindsay Rosenwald, Executive Chairman of the company, who spent a stonking US$2.0m on stock at an average price of US$0.83. Not only is that a big swing, but it increased their holding size by 18%, which is definitely great to see.

Check out our latest analysis for Fortress Biotech

Fortress Biotech Insider Transactions Over The Last Year

Notably, that recent purchase by Lindsay Rosenwald is the biggest insider purchase of Fortress Biotech 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$0.74. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Fortress Biotech insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Fortress Biotech

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Fortress Biotech insiders own about US$23m worth of shares. That equates to 24% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Fortress Biotech Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Fortress Biotech insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Fortress Biotech (1 is a bit unpleasant!) that we believe deserve your full attention.

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.

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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.