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Quite a few insiders have dramatically grown their holdings in Fortress Biotech, Inc. (NASDAQ:FBIO) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Fortress Biotech
The Last 12 Months Of Insider Transactions At Fortress Biotech
The Executive Chairman Lindsay Rosenwald made the biggest insider purchase in the last 12 months. That single transaction was for US$2.7m worth of shares at a price of US$1.70 each. We do like to see buying, but this purchase was made at well below the current price of US$1.94. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 2.56m shares worth US$4.5m. But insiders sold 10.00k shares worth US$19k. In total, Fortress Biotech insiders bought more than they sold over 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!
Fortress Biotech is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Fortress Biotech Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Fortress Biotech. We can see that Executive Chairman Lindsay Rosenwald paid US$1.4m for shares in the company. No-one sold. That shows some optimism about the company's future.
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. It appears that Fortress Biotech insiders own 19% of the company, worth about US$11m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Fortress Biotech Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Fortress Biotech we think they are probably pretty confident of a bright future. 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 instance, we've identified 5 warning signs for Fortress Biotech (3 shouldn't be ignored) you should be aware of.