Fortress Real Estate Investments Insiders Added R118.1m Of Stock To Their Holdings

Multiple insiders secured a larger position in Fortress Real Estate Investments Limited (JSE:FFB) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

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.

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Fortress Real Estate Investments Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO, MD & Executive Director Steven Brown for R42m worth of shares, at about R22.94 per share. Even though the purchase was made at a significantly lower price than the recent price (R25.76), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Fortress Real Estate Investments insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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 Fortress Real Estate Investments

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Fortress Real Estate Investments Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Fortress Real Estate Investments. In total, insiders bought R118m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Fortress Real Estate Investments

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.1% of Fortress Real Estate Investments shares, worth about R328m. 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 Fortress Real Estate Investments Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Fortress Real Estate Investments. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fortress Real Estate Investments. To that end, you should learn about the 4 warning signs we've spotted with Fortress Real Estate Investments (including 1 which is concerning).

But note: Fortress Real Estate Investments 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 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.