Insider Spends US$99k Buying More Shares In FRP Holdings

Even if it's not a huge purchase, we think it was good to see that John Baker, the CEO & Director of FRP Holdings, Inc. (NASDAQ:FRPH) recently shelled out US$99k to buy stock, at US$23.70 per share. However, it only increased their shares held by 1.7%, and it wasn't a huge purchase by absolute value, either.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

FRP Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Executive Chairman John Baker was not their only acquisition of FRP Holdings shares this year. They previously made an even bigger purchase of US$10.0m worth of shares at a price of US$29.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$23.99). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Over the last year, we can see that insiders have bought 352.68k shares worth US$10m. But insiders sold 2.50k shares worth US$79k. In total, FRP Holdings insiders bought more than they sold over the last year. 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!

Check out our latest analysis for FRP Holdings

FRP Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does FRP Holdings Boast High 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. FRP Holdings insiders own 37% of the company, currently worth about US$167m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At FRP Holdings Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest FRP Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! While it's good to be aware of 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. Our analysis shows 3 warning signs for FRP Holdings (1 is potentially serious!) and we strongly recommend you look at these before investing.

Of course FRP Holdings 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.