Will Insiders Be Tempted To Buy More FIO At The New 52-Week Low?
Here's a rhetorical question: Who knows more about fundamentals at the business level than the company's own insiders? So let's take a look to see whether any company insiders were taking the other side of the trade as FIO shares were being sold down to this new 52-week low, focusing on the most recent trailing six month period. As summarized by the table below, FIO has seen 2 different instances of insiders buying over the past six months.
|10/25/2013||Shawn J. Lindquist||Chief Legal Officer||11,000||$9.49||$104,445.00|
|10/25/2013||Shane V. Robison||Chief Executive Officer||105,500||$9.52||$1,004,476.05|
In the short run, while the new 52-week low suggests the stock is at the cheapest price and perhaps therefore the best bargain it has been over the last 52 weeks, the low print also means anyone who has purchased the stock over that timeframe is staring at an unrealized loss. Oftentimes, that factor drives a stock's technical analysis metrics by creating overhead resistance, with investors who bought higher now anxious to reverse their trade once they are back to breakeven. The chart below shows where FIO has traded over the past year, with the 50-day and 200-day moving averages included.