Investors who take an interest in Fortress Real Estate Investments Limited (JSE:FFB) should definitely note that the CEO, MD & Executive Director, Steven Brown, recently paid R21.85 per share to buy R4.2m worth of the stock. While that’s a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.4%.
The Last 12 Months Of Insider Transactions At Fortress Real Estate Investments
In fact, the recent purchase by CEO, MD & Executive Director Steven Brown was not their only acquisition of Fortress Real Estate Investments shares this year. Earlier in the year, they paid R22.94 per share in a R42m purchase. So it’s clear an insider wanted to buy, at around the current price, which is R23.62. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. Happily, the Fortress Real Estate Investments insiders decided to buy shares at close to current prices.
Fortress Real Estate Investments 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Fortress Real Estate Investments
Fortress Real Estate Investments is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Fortress Real Estate Investments insiders own about R301m worth of shares. That equates to 1.0% 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 Fortress Real Estate Investments Insiders?
It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Fortress Real Estate Investments. That’s what I like to see! So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Case in point: We’ve spotted 3 warning signs for Fortress Real Estate Investments you should be aware of, and 1 of them is concerning.
Of course Fortress Real Estate Investments 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
