Fortress Real Estate Investments Insiders Added R127.5m Of Stock To Their Holdings

In the last year, multiple insiders have substantially increased their holdings of Fortress Real Estate Investments Limited (JSE:FFB) stock, indicating that insiders’ optimism about the company’s prospects has increased.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Fortress Real Estate Investments

Over the last year, we can see that the biggest insider purchase was by CEO, MD & Executive Director Steven Brown for R42m worth of shares, at about R22.94 per share. That means that an insider was happy to buy shares at around the current price of R24.55. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. 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.

While Fortress Real Estate Investments insiders bought shares during the last year, they didn’t sell. You can see the insider transactions (by companies and 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!

See our latest analysis for Fortress Real Estate Investments

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At Fortress Real Estate Investments Have Bought Stock Recently

Over the last quarter, Fortress Real Estate Investments insiders have spent a meaningful amount on shares. In total, insiders bought R9.4m worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Fortress Real Estate Investments insiders own 1.1% of the company, worth about R323m. 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 Do The Fortress Real Estate Investments Insider Transactions Indicate?

It’s certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Fortress Real Estate Investments insiders are well aligned, and quite possibly think the share price is too low. Looks promising! While it’s good to be aware of what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we’ve spotted 3 warning signs for Fortress Real Estate Investments (of which 1 makes us a bit uncomfortable!) 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 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.