Insiders who bought in the last 12 months lose an additional US$39k as Frontier Communications Parent, Inc. (NASDAQ:FYBR) drops to US$5.2b
The recent price decline of 12% in Frontier Communications Parent, Inc.'s (NASDAQ:FYBR) stock may have disappointed insiders who bought US$145k worth of shares at an average price of US$29.09 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$107k which is not ideal.
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.
See our latest analysis for Frontier Communications Parent
Frontier Communications Parent Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive Chairman of the Board John Stratton for US$145k worth of shares, at about US$29.09 per share. That means that an insider was happy to buy shares at above the current price of US$21.31. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was John Stratton.
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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. We usually like to see fairly high levels of insider ownership. From our data, it seems that Frontier Communications Parent insiders own 0.2% of the company, worth about US$9.6m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Frontier Communications Parent Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Frontier Communications Parent insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Frontier Communications Parent. At Simply Wall St, we've found that Frontier Communications Parent has 3 warning signs (2 can't be ignored!) that deserve your attention before going any further with your analysis.
Of course Frontier Communications Parent 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.
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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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