Will Insiders Be Tempted To Buy More FGP At The New 52-Week Low?

In trading on Thursday, shares of Ferrellgas Partners, L.P. ( FGP) touched a new 52-week low of $21.67/share. That's a $7.03 share price drop, or -24.49% decline from the 52-week high of $28.70 set back on 09/02/2014. Large percentage drops always require that the stock post even larger percentage gains from the low in order to recover the old price point, and for FGP that means the stock would have to gain 32.44% to get back to the 52-week high. For a move like that, Ferrellgas Partners, L.P. would need fundamental strength at the business level.

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 FGP 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, FGP has seen 4 different instances of insiders buying over the past six months.

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Ten Bargains You Can Buy Cheaper Than The Insiders Did »

Purchased Insider Title Shares Price/Share Value
12/12/2014 Stephen L. Wambold CEO and President 13,940 $23.81 $331,911.40
12/15/2014 Boyd H. McGathey EVP & COO 1,000 $24.33 $24,330.00
01/22/2015 Boyd H. McGathey EVP & COO 1,000 $23.33 $23,330.00
03/17/2015 Stephen L. Wambold CEO and President 5,000 $22.26 $111,290.60
03/17/2015 Alan C. Heitmann Chief Financial Officer 4,200 $22.46 $94,332.00
03/20/2015 Daniel G. Kaye Director 1,000 $22.25 $22,250.00
03/24/2015 Boyd H. McGathey EVP & COO 1,000 $22.08 $22,076.00
03/25/2015 Boyd H. McGathey EVP & COO 1,000 $22.30 $22,300.00

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 FGP has traded over the past year, with the 50-day and 200-day moving averages included.

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