In This Article:
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in ForFarmers N.V.'s (AMS:FFARM) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for ForFarmers
ForFarmers Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Chris Deen for €112k worth of shares, at about €2.79 per share. That means that an insider was happy to buy shares at around the current price of €2.81. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for ForFarmers share holders is that insiders were buying at near the current price. Notably Chris Deen was also the biggest seller.
Over the last year, we can see that insiders have bought 57.50k shares worth €161k. On the other hand they divested 40.00k shares, for €101k. Overall, ForFarmers insiders were net buyers during the last year. 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!
ForFarmers is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. ForFarmers insiders own about €14m worth of shares. That equates to 5.4% 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 ForFarmers Tell Us?
It doesn't really mean much that no insider has traded ForFarmers shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in ForFarmers and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - ForFarmers has 1 warning sign we think you should be aware of.