A lot of Forestar Group Inc. (NYSE:FOR) insiders have been dumping their shares over the past year, which could be interesting for the company’s shareholders. When analyzing insider transactions, it’s typically more valuable to know if insiders are buying than if they’re selling, as the latter sends an ambiguous message. However, if there’s a lot of insider selling, shareholders should do more research.

While we would never argue that investors should base their decisions solely on what a company’s directors have done, we believe it is foolish to completely ignore insider transactions.

View our latest analysis for Forestar Group

The last 12 months of insider transactions at Forestar Group

Over the last year, we can see that the largest insider sale was made by the consultant, Daniel Bartok, for US$617,000 worth of shares, at around US$31.12 per share. So we know that an insider sold shares for around the current share price of US$30.66. We generally don’t like to see insider selling, but the lower the sale price, the more it worries us. Given that the sale occurred at around current prices, it makes us a little cautious, but it’s hardly a major concern.

Over the past year, we have seen more insider selling of Forestar Group shares than buying. Below is a visual representation of insider transactions (by companies and individuals) over the past 12 months. By clicking on the chart below, you can see the precise details of each insider transaction!

For those who like to search for hidden gems this free list of small-cap companies that have recently made insider purchases could be the answer.

Forestar Group insiders recently bought shares

Over the past three months, we have seen a bit of insider buying in Forestar Group. President & CEO Anthony Oxley bought US$100,000 worth of shares during that time. However, independent director G. Ringler made US$63,000 selling. While it is good to see insider buying, the net amount bought is not enough to give much confidence.

Insider ownership of Forestar Group

Looking at the total insider ownership of a company can help you determine whether they are well aligned with ordinary shareholders. High insider ownership often indicates that a company’s management is more aware of shareholder interests. Our data indicates that Forestar Group insiders own around US$7.1 million worth of shares (which is 0.5% of the company). While this is better than nothing, we’re not overly impressed with this level of ownership.

What can insider transactions at Forestar Group tell us?

Insider buying may have been minimal over the past three months, but there was no selling at all. Overall, the buying is not worth writing home about. We are a bit cautious about the insider selling at Forestar Group. We also note that, as far as we can see, insider ownership is quite low, compared to other companies. Therefore, you should definitely take a look at this FREE report with analyst forecasts for Forestar Group.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory authority. We currently only consider open market transactions and private disposals of direct interests, but not derivative transactions or indirect interests.

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This article from Simply Wall St is general in nature. We comment solely on historical data and analyst forecasts, using an objective methodology. Our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any shares and does not take into account your objectives or financial situation. We aim to provide you with a long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in the shares mentioned.

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