Fortress Real Estate Investments Insiders Placed Bullish Bets Worth R118.1m

Quite a few insiders have dramatically grown their holdings in Fortress Real Estate Investments Limited (JSE:FFB) over the past 12 months. An insider’s optimism about the company’s prospects is a positive sign.

Although we don’t think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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In the last twelve months, the biggest single purchase by an insider was when CEO, MD & Executive Director Steven Brown bought R42m worth of shares at a price of R22.94 per share. So it’s clear an insider wanted to buy, at around the current price, which is R25.30. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Fortress Real Estate Investments share holders is that insiders were buying at near the current price.

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!

Check out 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.

It’s good to see that Fortress Real Estate Investments insiders have made notable investments in the company’s shares. In total, insiders bought R118m worth of shares in that time, and we didn’t record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Fortress Real Estate Investments insiders own about R322m worth of shares. That equates to 1.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

It is good to see recent purchasing. 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. Nice! So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Be aware that Fortress Real Estate Investments is showing 4 warning signs in our investment analysis, and 1 of those can’t be ignored…

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.