The recent 6.5% drop in Fortress Transportation and Infrastructure Investors LLC's (NYSE:FTAI) stock could come as a blow to insiders who purchased US$2.8m worth of stock at an average buy price of US$25.50 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$2.5m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Fortress Transportation and Infrastructure Investors
Over the last year, we can see that the biggest insider purchase was by Independent Director Martin Tuchman for US$2.6m worth of shares, at about US$25.50 per share. That means that an insider was happy to buy shares at above the current price of US$23.36. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Fortress Transportation and Infrastructure Investors insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Fortress Transportation and Infrastructure Investors Have Bought Stock Recently
Over the last quarter, Fortress Transportation and Infrastructure Investors insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$2.8m worth of shares. This is a positive in our book as it implies some confidence.
Does Fortress Transportation and Infrastructure Investors Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Fortress Transportation and Infrastructure Investors insiders own 1.1% of the company, worth about US$25m. 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 Transportation and Infrastructure Investors Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Fortress Transportation and Infrastructure Investors shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Fortress Transportation and Infrastructure Investors you should be aware of.
Of course Fortress Transportation and Infrastructure Investors 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, but not derivative transactions.
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.
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