Insiders At Forestar Group Sold US$2.0m In Stock, Alluding To Potential Weakness

Many Forestar Group Inc. (NYSE:FOR) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Forestar Group

The Last 12 Months Of Insider Transactions At Forestar Group

Over the last year, we can see that the biggest insider sale was by the Consultant, Daniel Bartok, for US$617k worth of shares, at about US$31.12 per share. So we know that an insider sold shares at around the present share price of US$30.66. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year we saw more insider selling of Forestar Group shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Forestar Group Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Forestar Group. President & CEO Anthony Oxley bought US$100k worth of shares in that time. However, Independent Director G. Ringler netted US$63k for sales. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.

Insider Ownership Of Forestar Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Forestar Group insiders own about US$7.1m worth of shares (which is 0.5% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Forestar Group Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. We're a little cautious about the insider selling at Forestar Group. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Forestar Group.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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