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Potential Fortune Bay Corp. (CVE:FOR) shareholders may wish to note that the Executive Chairman, Wade Dawe, recently bought CA$320k worth of stock, paying CA$0.32 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 15%.
Fortune Bay Insider Transactions Over The Last Year
In fact, the recent purchase by Wade Dawe was the biggest purchase of Fortune Bay shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (CA$0.51), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Fortune Bay insiders were buying shares, but not selling. They paid about CA$0.27 on average. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!
View our latest analysis for Fortune Bay
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).
Insider Ownership Of Fortune Bay
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. Fortune Bay insiders own about CA$4.6m worth of shares. That equates to 16% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Fortune Bay Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Fortune Bay 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. Be aware that Fortune Bay is showing 5 warning signs in our investment analysis, and 2 of those don't sit too well with us...