Yahoo Finance The Executive Chairman of Fortress Biotech, Inc. (NASDAQ:FBIO), Lindsay Rosenwald, Just Bought 18% More Shares
Those following along with Fortress Biotech, Inc. (NASDAQ:FBIO) will no doubt be intrigued by the recent purchase of shares by Lindsay Rosenwald, Executive Chairman of the company, who spent a stonking US$2.0m on stock at an average price of US$0.83. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 18%.
See our latest analysis for Fortress Biotech
Fortress Biotech Insider Transactions Over The Last Year
Notably, that recent purchase by Lindsay Rosenwald is the biggest insider purchase of Fortress Biotech shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$0.71. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Fortress Biotech insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Fortress Biotech is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Fortress Biotech
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 27% of Fortress Biotech shares, worth about US$24m. 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 Biotech Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Fortress Biotech we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with Fortress Biotech (including 1 which is concerning).
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, 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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