Insiders of JFB Construction Holdings Getting Good Value On Their US$928.1k Investment

Insiders who bought JFB Construction Holdings (NASDAQ:JFB) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$23m as a result of the stock's 16% gain over the same period. Put another way, the original US$928.1k acquisition is now worth US$3.32m.

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.

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The Last 12 Months Of Insider Transactions At JFB Construction Holdings

The Founder Joseph Basile made the biggest insider purchase in the last 12 months. That single transaction was for US$400k worth of shares at a price of US$4.13 each. Even though the purchase was made at a significantly lower price than the recent price (US$16.48), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months JFB Construction Holdings insiders were buying shares, but not selling. They paid about US$4.61 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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!

Check out our latest analysis for JFB Construction Holdings

JFB Construction Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

JFB Construction Holdings Insiders Bought Stock Recently

Over the last quarter, JFB Construction Holdings insiders have spent a meaningful amount on shares. In total, insiders bought US$128k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that JFB Construction Holdings insiders own 45% of the company, worth about US$69m. 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 JFB Construction Holdings Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about JFB Construction Holdings. One for the watchlist, at least! While it's good to be aware of 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. Our analysis shows 2 warning signs for JFB Construction Holdings (1 is a bit concerning!) and we strongly recommend you look at them before investing.

But note: JFB Construction Holdings 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.