Insiders of FTAI Infrastructure Getting Good Value On Their US$1.0m Investment

FTAI Infrastructure Inc. (NASDAQ:FIP) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 10%, resulting in a US$34m rise in the company's market capitalisation. As a result, their original purchase of US$1.0m worth of stock is now worth US$1.3m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for FTAI Infrastructure

The Last 12 Months Of Insider Transactions At FTAI Infrastructure

Over the last year, we can see that the biggest insider purchase was by CEO & President Kenneth Nicholson for US$880k worth of shares, at about US$2.94 per share. We do like to see buying, but this purchase was made at well below the current price of US$3.69. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While FTAI Infrastructure insiders bought shares during the last year, they didn't sell. 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!

FTAI Infrastructure is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does FTAI Infrastructure 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests FTAI Infrastructure insiders own 0.8% of the company, worth about US$2.9m. We consider this fairly low insider ownership.

So What Do The FTAI Infrastructure Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if FTAI Infrastructure insiders bought more shares in the company. 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. To help with this, we've discovered 3 warning signs (2 shouldn't be ignored!) that you ought to be aware of before buying any shares in FTAI Infrastructure.

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, 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.