David Hutchens Is The President of Fortis Inc. (TSE:FTS) And They Just Picked Up 31% More Shares
Fortis Inc. (TSE:FTS) shareholders (or potential shareholders) will be happy to see that the President, David Hutchens, recently bought a whopping CA$1.0m worth of stock, at a price of CA$50.80. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 31%.
View our latest analysis for Fortis
Fortis Insider Transactions Over The Last Year
The insider, Jon Jipping, made the biggest insider sale in the last 12 months. That single transaction was for CA$3.5m worth of shares at a price of CA$58.36 each. So we know that an insider sold shares at around the present share price of CA$49.79. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was Jon Jipping.
In the last twelve months insiders purchased 87.42k shares for CA$4.6m. But they sold 60.00k shares for CA$3.5m. In total, Fortis insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Fortis 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
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Fortis insiders own about CA$30m worth of shares. That equates to 0.1% 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.
So What Do The Fortis Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Fortis shares, given these transactions (along with notable insider ownership of the company). While we like knowing 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Fortis.
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.
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.
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