Yahoo Finance Insider Buying: The Freehold Royalties Ltd. (TSE:FRU) Chief Operating Officer Just Bought CA$82k Worth Of Shares
Even if it's not a huge purchase, we think it was good to see that David Spyker, the Chief Operating Officer of Freehold Royalties Ltd. (TSE:FRU) recently shelled out CA$82k to buy stock, at CA$4.24 per share. Even though that isn't a massive buy, it did increase their holding by 405%, which is a arguably a good sign.
See our latest analysis for Freehold Royalties
Freehold Royalties Insider Transactions Over The Last Year
In fact, the recent purchase by David Spyker was the biggest purchase of Freehold Royalties shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than CA$3.75 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Freehold Royalties insiders were buying shares, but not selling. They paid about CA$5.78 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data isn't picking up on much insider ownership at Freehold Royalties, though insiders do hold about CA$1.1m worth of shares. However, it's possible that insiders might have an indirect interest through a more complex structure. This level of insider ownership is notably low, and not very encouraging.
So What Does This Data Suggest About Freehold Royalties Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Freehold Royalties stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Freehold Royalties. For example, Freehold Royalties has 4 warning signs (and 2 which can't be ignored) we think you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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