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Those following along with Foresight Group Holdings Limited (LON:FSG) will no doubt be intrigued by the recent purchase of shares by Bernard Fairman, Co-Founder & Executive Chairman of the company, who spent a stonking UK£1.6m on stock at an average price of UK£4.00. While that only increased their holding size by 1.2%, it is still a big swing by our standards.
Check out our latest analysis for Foresight Group Holdings
The Last 12 Months Of Insider Transactions At Foresight Group Holdings
In fact, the recent purchase by Bernard Fairman was the biggest purchase of Foresight Group Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than UK£3.71 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Foresight Group Holdings insiders bought shares during the last year, they didn't sell. 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 always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Foresight Group Holdings Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Foresight Group Holdings insiders own about UK£145m worth of shares (which is 34% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Foresight Group Holdings Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Foresight Group Holdings insiders are well aligned, and quite possibly think the share price is too low. Nice! While it's good to be aware of 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. While conducting our analysis, we found that Foresight Group Holdings has 1 warning sign and it would be unwise to ignore this.