From what we can see, insiders were net sellers in Ferrari N.V.'s (NYSE:RACE ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Ferrari
Ferrari Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Benedetto Vigna for US$4.2m worth of shares, at about US$370 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$347). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Benedetto Vigna. We note that Benedetto Vigna was both the biggest buyer and the biggest seller.
Benedetto Vigna divested 12.89k shares over the last 12 months at an average price of €352. You can see a visual depiction of insider transactions (by companies and 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders At Ferrari Have Bought Stock Recently
We saw some Ferrari insider buying shares in the last three months. In that period CEO & Executive Director Benedetto Vigna spent US$4.2m on shares. But CEO & Executive Director Benedetto Vigna sold US$4.1m worth. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Ferrari insiders own 11% of the company, worth about US$6.7b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Ferrari Insider Transactions Indicate?
Insider selling has just outweighed insider buying in the last three months. But the net divestment is not enough to concern us at all. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Ferrari insider transactions don't fill us with confidence. 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. Every company has risks, and we've spotted 2 warning signs for Ferrari you should know about.
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.