We note that the FRP Holdings, Inc. (NASDAQ:FRPH) President & Vice-Chairman, David deVilliers, recently sold US$78k worth of stock for US$31.14 per share. On the bright side, that's just a small sale and only reduced their holding by 4.0%.
FRP Holdings Insider Transactions Over The Last Year
Notably, that recent sale by President & Vice-Chairman David deVilliers was not the only time they sold FRP Holdings shares this year. They previously made an even bigger sale of -US$200k worth of shares at a price of US$29.51 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$31.17. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 11% of David deVilliers's holding.
FRP Holdings insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of FRP Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. FRP Holdings insiders own 30% of the company, currently worth about US$177m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About FRP Holdings Insiders?
Insiders sold FRP Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that FRP Holdings is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing FRP Holdings. At Simply Wall St, we've found that FRP Holdings has 2 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
