The President of Four Corners Property Trust, Inc. (NYSE:FCPT), William Lenehan, Just Bought 1.6% More Shares

Simply Wall St
February 24, 2022
Source: Shutterstock

Investors who take an interest in Four Corners Property Trust, Inc. (NYSE:FCPT) should definitely note that the President, William Lenehan, recently paid US$26.18 per share to buy US$200k worth of the stock. Although the purchase only increased their holding by 1.6%, it is still a solid purchase in our view.

View our latest analysis for Four Corners Property Trust

Four Corners Property Trust Insider Transactions Over The Last Year

In fact, the recent purchase by William Lenehan was the biggest purchase of Four Corners Property Trust shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$26.10). 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was William Lenehan.

William Lenehan bought 12.30k shares over the last 12 months at an average price of US$26.46. 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!

NYSE:FCPT Insider Trading Volume February 24th 2022

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.

Does Four Corners Property Trust 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Four Corners Property Trust insiders own about US$23m worth of shares. That equates to 1.1% 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.

What Might The Insider Transactions At Four Corners Property Trust Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Four Corners Property Trust we think they are probably pretty confident of a bright future. While we like knowing 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 Four Corners Property Trust (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.

But note: Four Corners Property Trust may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.