Yahoo Finance Hopeful week for insiders who might be regretting buying US$1.4m of Fidelity National Information Services, Inc. (NYSE:FIS) stock earlier this year
Some of the losses seen by insiders who purchased US$1.4m worth of Fidelity National Information Services, Inc. (NYSE:FIS) shares over the past year were recovered after the stock increased by 4.3% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$173k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Fidelity National Information Services
Fidelity National Information Services Insider Transactions Over The Last Year
The Independent Director Brian Shea made the biggest insider purchase in the last 12 months. That single transaction was for US$158k worth of shares at a price of US$68.72 each. That means that even when the share price was higher than US$58.72 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Fidelity National Information Services insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Insiders At Fidelity National Information Services Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Fidelity National Information Services. In total, insiders bought US$1.4m 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 Of Fidelity National Information Services
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Fidelity National Information Services insiders own about US$98m worth of shares. That equates to 0.3% 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 Do The Fidelity National Information Services Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Fidelity National Information Services insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fidelity National Information Services. Case in point: We've spotted 1 warning sign for Fidelity National Information Services you should be aware of.
Of course Fidelity National Information Services 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. 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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