Insiders who bought Forward Air Corporation (NASDAQ:FWRD) stock lover the last 12 months are probably not as affected by last week’s 4.0% loss. Reason being, despite the recent loss, insiders original purchase value of US$1.3m is now worth US$1.4m.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Forward Air
In the last twelve months, the biggest single purchase by an insider was when Independent Director Scott Niswonger bought US$902k worth of shares at a price of US$90.15 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$102. 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.
Happily, we note that in the last year insiders paid US$1.3m for 14.00k shares. On the other hand they divested 9.68k shares, for US$1.0m. In the last twelve months there was more buying than selling by Forward Air insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Forward Air Insiders Bought Stock Recently
It's good to see that Forward Air insiders have made notable investments in the company's shares. Independent Director Laurie Tucker spent US$408k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Forward Air
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. Forward Air insiders own about US$28m worth of shares. That equates to 1.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Forward Air Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Forward Air 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Forward Air.
But note: Forward Air 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.
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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.
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