FTC Solar, Inc.'s (NASDAQ:FTCI) stock price has dropped 11% in the previous week, but insiders who sold US$463k in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of US$10.85 is still lower than the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

FTC Solar Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Yann Brandt, for US$409k worth of shares, at about US$11.67 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$4.56. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 49.91k shares for US$247k. But they sold 42.66k shares for US$463k. In total, FTC Solar insiders sold more than they bought over the last year. The sellers received a price of around US$10.85, on average. It is certainly not great to see that insiders have sold shares in the company. But we note that the selling, on average, was at well above the recently traded price of US$4.56. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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FTC Solar Insiders Bought Stock Recently

It's good to see that FTC Solar insiders have made notable investments in the company's shares. Overall, three insiders shelled out US$145k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of FTC Solar

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 27% of FTC Solar shares, worth about US$21m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The FTC Solar Insider Transactions Indicate?

The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by FTC Solar insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing FTC Solar. At Simply Wall St, we've found that FTC Solar has 5 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.

Of course FTC Solar may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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.