Australia markets close in 59 minutes
  • ALL ORDS

    7,328.50
    -91.30 (-1.23%)
     
  • ASX 200

    7,096.10
    -76.70 (-1.07%)
     
  • AUD/USD

    0.7832
    -0.0002 (-0.03%)
     
  • OIL

    64.36
    -0.56 (-0.86%)
     
  • GOLD

    1,836.60
    -1.00 (-0.05%)
     
  • BTC-AUD

    70,561.59
    -5,656.15 (-7.42%)
     
  • CMC Crypto 200

    1,458.85
    -102.45 (-6.56%)
     
  • AUD/EUR

    0.6446
    -0.0005 (-0.07%)
     
  • AUD/NZD

    1.0780
    +0.0001 (+0.01%)
     
  • NZX 50

    12,605.11
    -53.90 (-0.43%)
     
  • NASDAQ

    13,359.08
    -360.55 (-2.63%)
     
  • FTSE

    7,123.68
    -6.03 (-0.08%)
     
  • Dow Jones

    34,742.82
    -34.94 (-0.10%)
     
  • DAX

    15,400.41
    +0.76 (+0.00%)
     
  • Hang Seng

    27,982.21
    -613.45 (-2.15%)
     
  • NIKKEI 225

    28,553.85
    -964.49 (-3.27%)
     

Are Insiders Buying Fertoz Limited (ASX:FTZ) Stock?

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3-min read
  • Oops!
    Something went wrong.
    Please try again later.

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Fertoz Limited (ASX:FTZ).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for Fertoz

Fertoz Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Stuart Richardson bought AU$129k worth of shares at a price of AU$0.06 per share. That implies that an insider found the current price of AU$0.073 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Fertoz insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Stuart Richardson.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

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.

Insider Ownership of Fertoz

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Fertoz insiders own 19% of the company, worth about AU$1.9m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Fertoz Insider Transactions Indicate?

The fact that there have been no Fertoz insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Fertoz and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fertoz. Be aware that Fertoz is showing 5 warning signs in our investment analysis, and 2 of those don't sit too well with us...

Of course Fertoz may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

This article by Simply Wall St is general in nature. 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 (at) simplywallst.com.