FRP Holdings Insiders May Regret Not Buying More, Market Cap Hits US$562m \
Last week, FRP Holdings, Inc. (NASDAQ:FRPH) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 16% last week, resulting in a US$78m increase in the company's market worth. In other words, the original US$429k purchase is now worth US$491k.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for FRP Holdings
FRP Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by John Baker was the biggest purchase of FRP Holdings shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of US$61.03. 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.
John Baker bought 8.04k shares over the last 12 months at an average price of US$53.37. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
FRP Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At FRP Holdings Have Bought Stock Recently
At FRP Holdings,over the last quarter, we have observed quite a lot more insider buying than insider selling. Executive Chairman & CEO John Baker spent US$429k on stock. But Executive Vice President David deVilliers sold shares worth US$70k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. FRP Holdings insiders own about US$171m worth of shares (which is 30% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About FRP Holdings Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about FRP Holdings. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for FRP Holdings and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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.
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