Whilst it may not be a huge deal, we thought it was good to see that the Fortis Inc. (TSE:FTS) Independent Corporate Director, Margarita Dilley, recently bought CA$100k worth of stock, for CA$49.89 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
The Last 12 Months Of Insider Transactions At Fortis
Over the last year, we can see that the biggest insider sale was by the insider, Jon Jipping, for CA$3.5m worth of shares, at about CA$58.36 per share. That means that an insider was selling shares at around the current price of CA$50.62. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Over the last year, we can see that insiders have bought 69.50k shares worth CA$3.7m. But they sold 60297 shares for CA$3.5m. In the last twelve months there was more buying than selling by Fortis insiders. 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.
Does Fortis Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.2% of Fortis shares, worth about CA$37m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Fortis Insider Transactions Indicate?
Unfortunately, there has been more insider selling of Fortis stock, than buying, in the last three months. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So we're not overly bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Fortis (1 is potentially serious!) and we strongly recommend you look at these before investing.
Of course Fortis 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. 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. Thank you for reading.