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Looking at FRP Holdings, Inc.'s (NASDAQ:FRPH ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for FRP Holdings
The Last 12 Months Of Insider Transactions At FRP Holdings
In the last twelve months, the biggest single purchase by an insider was when Executive Chairman John Baker bought US$10.0m worth of shares at a price of US$29.00 per share. That means that an insider was happy to buy shares at around the current price of US$30.78. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for FRP Holdings share holders is that an insider was buying at near the current price. John Baker was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
FRP Holdings Insiders Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at FRP Holdings. In total, Executive Chairman John Baker bought US$10.0m worth of shares in that time. But we did see insider selling worth US$187k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Does FRP Holdings 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. We usually like to see fairly high levels of insider ownership. FRP Holdings insiders own about US$188m worth of shares (which is 32% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About FRP Holdings Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about FRP Holdings. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for FRP Holdings that deserve your attention before buying any shares.