Freeport-McMoRan Insiders Sold US$2.9m Of Shares Suggesting Hesitancy

Many Freeport-McMoRan Inc. (NYSE:FCX[1]) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares. See our latest analysis for Freeport-McMoRan[2]

Freeport-McMoRan Insider Transactions Over The Last Year

In fact, the recent sale by Richard Adkerson was the biggest sale of Freeport-McMoRan shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US£51.59.

We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 1.1% of Richard Adkerson's holding.

Freeport-McMoRan insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:FCX Insider Trading Volume May 12th 2024

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.[3]

Insiders At Freeport-McMoRan Have Sold Stock Recently

The last quarter saw substantial insider selling of Freeport-McMoRan shares.

Specifically, insiders ditched US£2.9m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests.

It's great to see that Freeport-McMoRan insiders own 0.5% of the company, worth about US£383m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Freeport-McMoRan Tell Us?

Insiders haven't bought Freeport-McMoRan stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases.

The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 2 warning signs[4] that you should run your eye over to get a better picture of Freeport-McMoRan.

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.[5] 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.

Valuation is complex, but we're helping make it simple.

Find out whether Freeport-McMoRan is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis[6]

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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.

References

1. ^ NYSE:FCX (simplywall.st)
2. ^ See our latest analysis for Freeport-McMoRan (simplywall.st)
3. ^ list of growing companies with recent insider purchasing, could be just the ticket. (simplywall.st)
4. ^ 2 warning signs (simplywall.st)
5. ^ list of interesting companies, that have HIGH return on equity and low debt. (simplywall.st)
6. ^ View the Free Analysis (simplywall.st)
7. ^ Get in touch (feedback.simplywall.st)