Yahoo Finance Insiders saw their AU$2.0m investment bump up to AU$4.0m after Fertoz Limited (ASX:FTZ) soared 29% last week
Fertoz Limited (ASX:FTZ) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 29%, resulting in a AU$16m rise in the company's market capitalisation. As a result, their original purchase of AU$2.0m worth of stock is now worth AU$4.0m.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Fertoz
The Last 12 Months Of Insider Transactions At Fertoz
The insider Bernanrd Stephens made the biggest insider purchase in the last 12 months. That single transaction was for AU$1.2m worth of shares at a price of AU$0.12 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.31), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid AU$2.0m for 12.79m shares. But they sold 3.06m shares for AU$782k. Overall, Fertoz insiders were net buyers during the last year. They paid about AU$0.16 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Fertoz is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Fertoz 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Fertoz insiders own about AU$23m worth of shares. That equates to 33% 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.
So What Does This Data Suggest About Fertoz Insiders?
It doesn't really mean much that no insider has traded Fertoz shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Fertoz insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 5 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Fertoz.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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.
