Fresh Del Monte Produce Inc. (NYSE:FDP) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Fresh Del Monte Produce Insider Transactions Over The Last Year
The Director Amir Abu-Ghazaleh made the biggest insider purchase in the last 12 months. That single transaction was for US$313k worth of shares at a price of US$23.63 each. That implies that an insider found the current price of US$24.13 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Fresh Del Monte Produce insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Amir Abu-Ghazaleh.
Over the last year we saw more insider selling of Fresh Del Monte Produce shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Fresh Del Monte Produce Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Fresh Del Monte Produce. Director Amir Abu-Ghazaleh bought US$313k worth in that time. On the other hand, they sold US$268k worth of shares. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.
Insider Ownership
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. Fresh Del Monte Produce insiders own about US$256m worth of shares (which is 22% of the company). 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 Fresh Del Monte Produce Insiders?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. It's great to see high levels of insider ownership, but looking back over the last year, we'd need to see more buying to gain confidence from the Fresh Del Monte Produce insider transactions. 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. At Simply Wall St, we found 1 warning sign for Fresh Del Monte Produce that deserve your attention before buying any shares.
But note: Fresh Del Monte Produce may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.