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Insider Buying: The Fletcher Building Limited (NZSE:FBU) Chief People & Communications Officer Just Bought NZ$51k Worth Of Shares

Even if it's not a huge purchase, we think it was good to see that Claire Carroll, the Chief People & Communications Officer of Fletcher Building Limited (NZSE:FBU) recently shelled out NZ$51k to buy stock, at NZ$3.42 per share. That purchase might not be huge but it did increase their holding by 18%.

View our latest analysis for Fletcher Building

Fletcher Building Insider Transactions Over The Last Year

Chief Executive of Residential & Development Steve Evans made the biggest insider purchase in the last 12 months. That single transaction was for NZ$136k worth of shares at a price of NZ$4.54 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being NZ$3.37). 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. 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.

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Happily, we note that in the last year insiders paid NZ$495k for 111.00k shares. But insiders sold 7483 shares worth NZ$35k. In the last twelve months there was more buying than selling by Fletcher Building insiders. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NZSE:FBU Recent Insider Trading, March 25th 2020
NZSE:FBU Recent Insider Trading, March 25th 2020

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Fletcher Building

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Fletcher Building insiders own 0.4% of the company, worth about NZ$11m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Fletcher Building Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Fletcher Building and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Fletcher Building has 4 warning signs we think you should be aware of.

Of course Fletcher Building 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.