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Insiders were net buyers of Ferrari N.V.'s (NYSE:RACE ) stock during the past year. That is, insiders bought more stock than they 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.
Check out our latest analysis for Ferrari
The Last 12 Months Of Insider Transactions At Ferrari
The CEO & Executive Director Benedetto Vigna made the biggest insider purchase in the last 12 months. That single transaction was for US$4.2m worth of shares at a price of US$370 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$434. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
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!
Ferrari is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ferrari insiders own about US$8.2b worth of shares (which is 11% 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 Do The Ferrari Insider Transactions Indicate?
The fact that there have been no Ferrari insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Ferrari insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ferrari. In terms of investment risks, we've identified 1 warning sign with Ferrari and understanding it should be part of your investment process.
Of course Ferrari 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 of direct interests only, but not derivative transactions or indirect interests.
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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.